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Case Law Details

Case Name : ITO Vs Kavita Gupta (ITAT Mumbai)
Appeal Number : ITA No. 6884/MUM/2014
Date of Judgement/Order : 11/04/2018
Related Assessment Year : 2009-10
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ITO Vs Kavita Gupta (ITAT Mumbai)

The issue that where an assessee had independently acquired multiple flats, which however, were joined/merged together and used by the assessee as a single residential unit, the claim for exemption under section 54 in respect of total investment made towards acquisition of the said flats cannot be denied, stands settled as on date by the judgment of the Hon’ble High Court of Bombay in the case of CIT vs. Devdas Naik (2014) 366 ITR 12 (Bom).

We find that the Honble High Court in the aforesaid judgment had concluded that that where acquisition of two flats had been done independently by the assessee, but however, the said flats were constructed in such a way that the adjacent units or flats could be combined into one, and eventually had been merged into a single unit and were used for the purpose of residence by the assessee, the latters claim of exemption under section 54 could not be denied.

Still further, we find that a similar view was also earlier taken by the Hon’ble Jurisdictional High Court in the case of CIT vs. Raman Kumar Suri (2013) 212 Taxman 411 (Bom), wherein the Hon’ble High Court upholding the order of the Tribunal had concluded that where the assessee had acquired one residential house consisting of two flats, it cannot be said that the assessee had purchased two residential houses.

FULL TEXT OF THE ITAT JUDGMENT

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One Comment

  1. Anil Modi says:

    In 90% of the cases this is the way the Indian Bureaucracy works, thus making mockery of the ease of doing business or living.They will however, succumb to do even what not is right or legal if offered a few alms.
    Anil Modi

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