Where the assessee sold in AY 2009-10 by two different registered transfer deeds, two flats which were used as residence by amalgamating both into one single unit and invested the capital gains in one new residential house, exemption u/s 54 could not be denied. Relying on ITAT Mumbai’s order in DCIT v. Ranjit Vithaldas in ITA No. 7443/Mum/2002 and in ACIT 18(1) Mumbai v. Sh. Dinesh A Vora in ITA 5547/Mum/2011 it was held that Capital gains arising from more than one residential houses and invested in one residential house shall entail exemption under section 54.Appeal of the assessee was thus allowed.