TMI Blog2013 (4) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... of either of the houses. However, where more than one unit are purchased which are adjacent to each other and are converted into one house for the purpose of residence by having common passage, common kitchen, etc., then, it would be a case of investment in one residential house and consequently, the assessee would be entitled to exemption. As in the present case two adjacent flats were purchased and later on same were converted into one single residential unit. Both the flats were on one floor only and no other dwelling unit there was there on that floor. Builder had constructed two units, but the assessee converted them in one unit only. Spot inspection report clearly prove that there was common passage and only one kitchen was functi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Special bench of Mumbai Tribunal at point no.11 that. "In view of the above discussion, it is held that exemption under Section 54 and 54F of the Act would be allowable in respect of one residential house only. If the Assessee has purchased more than one residential house, then the choice would be with assessee to avail the exemption in respect of either of the houses provided the other conditions are fulfilled. However, where more than one 'unit are purchased which are adjacent to each are converted into one house for the purpose of residence by having common kitchen, etc. then it would be a case of investment in one residential house and consequently, the assessee would be entitled to exemption." 4. That the Ld. C.I.T. (Appeals), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Less: Expenses on sale Rs. 35,00,000 Rs. 5,14,00,000 Less: Invested in residential flat Rs. 3,09,80,000 Long Term Capital Gain Rs. 2,00,42,000 4. After going through the details filed by the assessee, AO that appellant had claimed exemption in respect of investment in two residential flats-Flat Nos.701 702 in Lido Towers, Santacruz, Mumbai. During the assessment proceedings, AO asked the assessee as why exemption should not be restricted to one flat? The assessee made an application u/s. 144A of the Act and in response to the same, Ward Inspector was deputed by the AO to verify the factual position. After considering the report of the Inspector, AO held that though both the flats were adjac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 7. We have heard the rival submissions and perused the material put before us. We find that issue has been decided by the Special Bench in the case of Sushila M. Jhaveri (supra). In para 11 of the order, Tribunal has held as under: 11. In view of the above discussion, it is held that exemption under Sections 54 and 54F of the Act would be allowable in respect of one residential house only. If the assessee has purchased more than one residential house, then the choice would be with assessee to avail the exemption in respect of either of the houses provided the other conditions are fulfilled. However, where more than one unit are purchased which are adjacent to each other and are converted into one house for the purpose of residence by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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