The HC held that under the unamended Section 54(1) of the Act,...

The HC held that under the unamended Section 54(1) of the Act, the term 'a residential house' is not restricted to a single residential unit but may include multiple residential houses. Consequently, the assessee was entitled to claim exemption from capital gains arising from the sale of a single flat by investing the proceeds in the purchase of seven row houses. The court relied on precedents affirming that the provision's language is descriptive of the property type rather than limiting the number of properties acquired. The interpretation favoring the assessee was adopted in line with Supreme Court authority. The appeal was allowed, granting the assessee full exemption under Section 54(1) for the capital gains on the basis of investment in multiple residential properties purchased within the stipulated period.