{"id":2954,"date":"2011-04-05T17:48:11","date_gmt":"2011-04-05T12:18:11","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=2954"},"modified":"2011-04-05T17:48:11","modified_gmt":"2011-04-05T12:18:11","slug":"rajesh-keshav-pillai-vs-ito-itat-mumbai-s-54-relief-available-to-multiple-sales-purchases-of-residential-houses","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/rajesh-keshav-pillai-vs-ito-itat-mumbai-s-54-relief-available-to-multiple-sales-purchases-of-residential-houses\/","title":{"rendered":"Rajesh Keshav Pillai vs. ITO (ITAT Mumbai)"},"content":{"rendered":"\n\n
Click here to download the judgement (rajesh_pillai_multiple_house_54.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n


\nS. 54 Relief available to multiple sales & purchases of residential houses
\n<\/strong><\/p>\n

The assessee sold two separate flats<\/em> and earned long-term capital gains of Rs. 1.74 crores. The assessee bought two different flats<\/em> for a consideration of Rs. 1.77 crores and claimed that the LTCG of Rs. 1.74 crores was exempt u\/s 54. The AO & CIT (A) followed the judgement of the Special Bench in ITO vs. Sushila Jhaveri<\/a><\/strong> 292 ITR (AT) 1 and held that the benefit of s. 54 was available in respect of only one flat<\/em> and not two flats. On appeal to the Tribunal, HELD allowing the appeal:<\/p>\n

(i) Though s. 54 refers to capital gains arising from \u201ctransfer of a residential house\u201d, it does not provide that the exemption is available only in relation to one house. If an assessee has sold multiple houses, then the exemption u\/s 54 is available in respect of all houses<\/strong> if the other conditions are fulfilled;<\/p>\n

(ii) The decision of the Special Bench in ITO vs. Sushila Jhaveri<\/a><\/strong> 292 ITR (AT) 1 is distinguishable. There the issue was whether if one house is sold and the proceeds are invested in several houses, the exemption u\/s 54 is available and it was held that the exemption was available only for one house<\/em>. But, if more than one house is sold and more than one house is bought, a corresponding exemption u\/s 54 is available<\/strong>;<\/p>\n

(iii) However, the exemption is not available on an aggregate basis<\/strong> but has to be computed considering each sale and the corresponding purchase<\/strong> adopting a combination beneficial to the assessee. <\/p>\n

\nNote: The same view has been taken in Humayun S. Rangila vs. ITO<\/strong> (included in the file<\/em>). See also K. G. Rukminiamma<\/strong> 331 ITR 211 (Kar) where four flats purchased in one building were held to be eligible for s. 54 exemption\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Though s. 54 refers to capital gains arising from \u201ctransfer of a residential house\u201d, it does not provide that the exemption is available only in relation to one house. If an assessee has sold multiple houses, then the exemption u\/s 54 is available in respect of all houses<\/strong> if the other conditions are fulfilled<\/p>\n

Read more ›<\/a><\/div>\n

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