Section 54 exemption for multiple flats under a joint development agreement extends to the entire built-up area received.

Under section 54 of the Income-tax Act, the expression "a residential house" was applied to flats received in the same premises under a joint development agreement. Relying on jurisdictional and persuasive precedents, the Tribunal treated multiple flats in the same building or premises as qualifying residential accommodation for the exemption. On that basis, the entire built-up area received from the builder was held eligible for deduction under section 54.

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Issues: Whether the assessee was entitled to deduction under section 54 of the Income-tax Act, 1961 on the entire built-up area received under the joint development agreement.

Analysis: The assessee's entitlement to exemption depended on whether the flats received in the same premises under the joint development arrangement could be treated as a residential house for the purpose of section 54. The Tribunal followed the principle that where the residential entitlement under the development agreement comprises multiple flats in the same building or premises, the expression "a residential house" is not confined to a single unit when the claim arises on the facts of the case. Applying the jurisdictional and persuasive precedents relied upon in the order, the built-up area received by the assessee was held to qualify for the statutory exemption.

Conclusion: The assessee was entitled to deduction under section 54 of the Income-tax Act, 1961 on the entire built-up area received from the builder under the joint development agreement.

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