Held that the immovable property purchased by the assessee consisting of four shops at the ground floor and a single room at the first floor, cannot be treated as a “residential house” within the meaning of S. 54 and, therefore, investment in said property is not eligible for exemption under S. 54.(AY. 2015-16)
Alauddin v. ITO (2025) 236 TTJ 497 (Agra)(Trib)
S. 54: Capital gains-Profit on sale of property used for residence-Buildings or lands appurtenant thereto-Purchase of property consisting of four shops and one room-Presence of a single room at the first floor of the commercial structure does not alter the dominant character of the property as the same is expected to be used for incidental and ancillary activities/for commercial purposes-The investment in the said new property does not qualify for exemption.[S.45]
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