2021 (6) TMI 663

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....tion 54 of the Income Tax Act, 1961 ["Act" in short]. 2. Brief facts of the case are that the assessee is an individual and filed her return of income for the assessment year 2009-10 on 06.07.2011 declaring an income of Rs..2,90,72,790/-. The case was selected for scrutiny and the assessment under section 143(3)of the Act was completed on 29.11.2011 by making an addition of Rs..6,84,730/-. Since the assessee has offered the capital gain on sale of property less than the market value of the property contravening the provisions of section 50C of the Act and the assessee has claimed exemption under section 54 of the Act on the purchase of 2 flats, the assessment was reopened by issuing notice under section 148 of the Act. 2.1 With regard....

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....54 of the Act for more than one house and thus, the ld. DR pleaded for reversing the appellate order. On the other hand, the ld. Counsel for the assessee strongly supported the order of the ld. CIT(A) and prayed for sustaining the appellate order. 4. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below including paper book filed by the assessee. Against the rejection of claim of exemption for the investment in two flats under section 54 of the Act, it was the submission before the ld. CIT(A) that the two flats are adjoining flats bearing Flat No. 802A and Flat No. 802B and there is only one kitchen and the assessee has used it as one residential unit. By relying on the d....

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....assage/staircase, common kitchen and common entrance and common amenities as per the project of the builder. In view of the above factual position as well as case law relied on, the assessee is entitled to claim deduction under section 54 of the Act for the reinvestment of long term capital gain in acquisition of both the flats as one residential unit. 6. Against the alternate plea of the assessee that even if the Department treat the residential unit as two different residential units and the assessee is entitled to claim exemption under section 54 of the Act in view of the decision in the case of CIT v. V.R. Karpagam (supra), we find that even though in V.R. Karpagam's case, the claim was raised under Section 54F of the Act the sai....