The assessee sold the shares and invested the capital gains  for purchase of residential house and claimed exemption u/s 54F of the Act .  The  AO held that the assessee owns nineresidential flats in his name and that he is deriving the income from the residential flats and declared the same under the head income from house property during AY 006-07 and is therefore, not eligible to claim exemption by invoking proviso (a)(i) and (b)to Section 54F (1). The assessing officer further recorded a finding that properties owned by the appellant aren5residential apartments. Accordingly, exemption under S. 54F of the Act was denied. Order of the AO is up held by the CIT (A) and Tribunal . On appeal the High Court held that  in determining whether the assessee owns more than one residential property, the usage of the property has to be considered. If an apartment is sanctioned for residential purposes but is in fact being used for commercial purposes as a serviced apartment, it has to be treated as commercial property. Alternatively, several independent residential units in the same building have to be treated as one residential unit and there is no impediment to allowance of exemption u/s 54F(1)  (ITA 320 of 2011 dt 20 -06 -2020 ) (AY. 2006 -07)