ITAT Allows Section 54 Deduction for Renovation to Make New House Habitable

Rustom Homi Vakil Vs ACIT (ITAT Mumbai)

The appeal before the Income Tax Appellate Tribunal (ITAT) Mumbai in Rustom Homi Vakil vs ACIT concerned whether expenses incurred for making a newly purchased residential house habitable qualify for exemption under Section 54 of the Income Tax Act, 1961. The assessee, a contractor, sold tenancy rights in a residential property for ₹2 crore during the Assessment Year 2009–10. He invested ₹1.31 crore in a new residential property in Pune and claimed exemption of that amount under Section 54, including ₹14,26,705 spent

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