Deduction u/s 54 allowable on Multiple Residential Houses built in same physical location and contiguous place: ITAT [Read Order]
![Deduction u/s 54 allowable on Multiple Residential Houses built in same physical location and contiguous place: ITAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/09/Deduction-multiple-residential-houses-ITAT.jpg "Deduction u/s 54 allowable on Multiple Residential Houses built in same physical location and contiguous place: ITAT [Read Order]")
The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) upheld the CIT(A) order which allowed the deduction under section 54 of the Income Tax Act,1961 on multiple residential houses built in same physical location and contiguous place The revenue challenged the order dated 30.10.2018 of the Commissioner of Income Tax (Appeals)-42, New Delhi about the Assessment Year...
The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) upheld the CIT(A) order which allowed the deduction under section 54 of the Income Tax Act,1961 on multiple residential houses built in same physical location and contiguous place
The revenue challenged the order dated 30.10.2018 of the Commissioner of Income Tax (Appeals)-42, New Delhi about the Assessment Year (“AY”) 2013-14.
The assessee, of Lt. Sh. Mohan Lal Bhasin who was represented by Advocate Shri S. Deora was a non-resident who e-filed a return on 30.07.2013 by his son Mr Heera Lal Bhasin, in his capacity as Legal Heir of his deceased father declaring income at Rs. 6,98,170/-.
The assessee had sold his residential property in New Delhi for Rs. 7,00,00,000/- resulting in Long Term Capital Gain of Rs. 6,70,18,000/- and claimed as exempt u/s 54 of the Income Tax Act, 1961 (“Act”) as he invested Rs. 9,44,34,110/- in the purchase of three plots in Gurgaon and constructed a single house. AO restricted the deduction under section 54 of the Act to only one house which amounted to Rs.3,14,78,037/- resulting in the addition of Rs. 3,55,40,000/- to the income of the assessee.
It was contended by the assessee that the house was constructed on three separate plots adjoining each other to enable him to have a house for himself which could accommodate all his family members and the families of his children, therefore, three similar units were constructed contiguous to each other in a single common compound wall.
A Coram comprising of Shri Shamim Yahya, accountant member and Ms Astha Chandra, judicial member upheld the CIT(A) order which allowed the claim of deduction under section 54 of the Act for a residential house built up on three adjacent contiguous plots and dismissed the appeal of the Revenue. The department was represented by Ms Anupama Singla.
To Read the full text of the Order CLICK HERE
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