Section 54F Deduction available on reinvestment in twin residential units

Arunkumar Purshotamlal Khanna Vs PCIT (ITAT Pune)

Held that a residential house for the purpose of section 54F(1) deduction can indeed cover multiple units in same or different towers or residential blocks

Facts-

The main issue in the present case is that the assessee claimed reinvestment of his LTCG u/s. 54F in respect of the purchase of twin residential units. Notably deduction was allowed in the regular assessment u/s 143(3). However, PCIT sought to invoke its 263 revision jurisdiction on the ground that the above stated regular assessment was an erroneous one causing prejudice interest of the Revenue.

Being aggrieved, the assessee preferred the present appeal.

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