S. 54F – If two flats were joined together before assessee became owner, the same will be considered as one

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HIGH COURT OF BOMBAY

Commissioner of Income-tax-12

v.

Raman Kumar Suri

IT APPEAL NO. 6962 OF 2010

NOVEMBER 27, 2012

 

Though the respondent-assessee had purchased flat Nos. 416A and 516A it was only purchase of one residential house. Further, the Tribunal held that two flats were joined together before the respondent assessee became the owner of the two flats. The Certificate from the society also established the fact that two flat Nos. 416A and 516A were joined together and were considered as one residential house. These concurrent findings of fact by the Commissioner of Income Tax (Appeals) and the Tribunal have not been shown to be perverse or arbitrary. Further, Section 54 of the Act exempts capital gain to the extent the consideration is paid for the purpose of a residential house. Consequently, where respondent-assessee has acquired one residential house consisting of two flats, it cannot be said the respondent assessee had purchased two residential houses.