Kamla Ajmera Vs PCIT (Delhi High Court)
Delhi High Court held that in case of investment in two residential properties, exemption under section 54F of the Income Tax Act is available in respect of only one of the two residential properties. Accordingly, appeal dismissed.
Facts- The assessee had inherited a property, after the demise of her husband in 2005, which had been initially purchased in the year 1983. The assessee sold the Plot for ₹77,75,000/- during the AY 2013-14. From its sale proceeds, the assessee purchased two apartments for sale consideration of ₹44,13,775/- and ₹42,39,275/- respectively. In the said transaction, assessee calculated her Income from Capital Gain at ₹77,21,957/-. The assessee, however, claimed the said income as exempt u/s. 54 of the Act, or in alternative, u/s. 54F of the Act.
During scrutiny assessment, AO held that benefit under Section 54 of the Act could not be claimed. The AO further noted that insofar as the alternative claim under Section 54F of the Act was concerned, since the assessee had purchased two residential properties i.e. two flats in Noida, the benefit under Section 54F of the Act could also not be claimed.
CIT(A) dismissed the appeal. ITAT partly allowed the appeal. Being aggrieved, the present appeal is filed.
