Exemption u/s 54F when the capital amount invested in two adjacent residential flats

DCIT Vs. Vikas Oberoi (ITAT Mumbai), I.T.A. No. 4362/M/2011 (AY: 2002- 03), Date of decision- 20.3.2013 Briefly stated relevant facts of this issue are that the AO restricted the claim of an exemption u/s 54F of the Act to Rs. 1,10,59,626/- only as against the assessee’s claim of Rs. 1,23,50,854/-. It was invested by the assessee on two residential flats located adjacent to each other. In this regard, AO made dis allowance of Rs. 12,91,228/- by giving the reasoning that the assessee has invested the capital gain in two separate flats, hence, as per the provisions of 54F, exemption has t...