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2015 (9) TMI 271 - AT - Income TaxRestricting the exemption claimed u/s 54 to the amount invested @ ₹ 3000/- per sq.ft. in Flat No.301 (1325sq.ft.) denied by CIT(A) - Held that:- In CIT & Anr. vs. D. Ananda Basappa (2008 (10) TMI 99 - KARNATAKA HIGH COURT) observed that expression "a residential house" should not be understood to indicate a singular number; assessee having purchased two residential flats, exemption under s. 54 was available, more so as these flats are situated side by side and the builder has effected modification of the flats to make it as one unit. Following CIT vs. D. Ananda Basappa (Supra) it was held in CIT & Anr. vs. Smt. K.G. Rukminiamma (2010 (8) TMI 482 - Karnataka High Court) that expression "a residential house" used in s. 54 should be understood in a sense that the building should be of residential nature and "a" should not be understood to indicate a singular number. Assessee was entitled to claim exemption under s. 54 in respect of four residential flats acquired by her. The CIT(A) has followed the decision of the Hon’ble jurisdictional High Court and therefore the said order does not require any interference. The Assessee was therefore entitled to exemption u/s.54 of the Act in respect of the two flats which were both located in the third floor. - Decided against revenue.
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