TMI Blog2012 (6) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... On the facts and circumstances of the case and in law, the learned CIT(A) erred and failed to appreciate that the assessee purchased four separate flats by separate agreements and sold by a single agreement and is therefore ineligible for exemption u/s. 54 of the Income Tax Act, 1961. iii) On the facts and circumstances of the case and in law, the learned CIT(A) failed to appreciate that in similar facts of the case the Hon ble ITAT, Mumbai Bench in the case of Dr. P. S. Pashricha (20 SOT 468) has held otherwise. The judgment has been subsequently affirmed by the Hon ble Bombay High Court vide theIr order dated 07/10/2009 in Appeal No. 1825 of 2009. 3 The assessee sold four flats bearing numbers 301, 302, 401 and 402 in building Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has submitted that the assessee own 50% share in the residential house in question. The said house comprising of four residential units and all are adjacent and usable as one unit. Thus, the four residential units were used as one residential house and therefore, the capital gain, on sale of the residential house comprising four adjacent flats, is eligible for deduction under section 54 of the I T Act. He has further submitted that the issue is covered by the CBDT circular number 207/24/76 I T (II) dated 25.3.1997 as well as by the decision of this Tribunal in case of Hamayan S Rangila (supra). 5 We have considered the rival submissions of the parties as well as relevant material on record. The expression used in section 54 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use provided other conditions are fulfilled. This position has also been clarified by CBDT vide circular F.No.207/24/76 IT(ii) dated 25.3.97 in which it has been clearly mentioned that capital gain arising on transfer of each house will qualify for exemption in case the assessee had sold more than one residential houses. The other issue is whether capital gain arising from sale of two flats can be exempted under section 54 if the gains are invested in one residential house. In our view this issue is also to be answered in favour of the assessee because the requirement of section 54 is that the capital gain arising from transfer of a residential house should be invested in a residential house. The requirement is that the investment should be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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