Section 54 Deduction on Multiple Residential Houses allowable if Units are in Same Physical Location

DCIT Vs Heera Lal Bhasin Legal Heir of Lt. Sh. Mohan Lal Bhasin (ITAT Delhi)

Hon’ble Delhi High Court in the case of Gita Duggal in which Delhi High Court quoted with approval the decision of Karnataka High Court in Smt. K.G. Rukminiamma’s case, Ld. CIT(A) held that word ‘a’ may represent the multiple residential units so long as they are in the same building and contiguous to each other and used as single residential house. In the present case the claim of deduction under section 54 of the Act is for a residential house built up on three adjacent contiguous plots. He further observed that the principle of multiple residential houses/units holds good till these units are in same physical location and contiguous to each other.

FULL TEXT OF THE ORDER OF ITAT DELHI

The appeal by the Revenue is directed against the order dated 30.10.2018 of the Ld. Commissioner of Income Tax (Appeals)-42, New Delhi [“CIT(A)”] pertaining to the Assessment Year (“AY”) 2013-14.

2. The Revenue has taking the following grounds of appeal:-

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