Taxpayer sells one house and buys 7 flats with capital gains. Tax dept denies benefit — here’s what ITAT rules

Taxpayer sells one house and buys 7 flats with capital gains. Tax dept denies benefit — here’s what ITAT rules
The ITAT Delhi has ruled that multiple adjacent flats can qualify as one residential house for Section 54 capital gains exemption if they function as a single residence. The tribunal allowed full tax relief to a taxpayer who reinvested sale proceeds from a property into seven flats located on the same floor.

Taxpayer sells one house, buys 7 flats with capital gains. Tax dept denies Section 54 benefit — here’s what ITAT says – Money News | The Financial Express

https://www.financialexpress.com/money/taxpayer-sells-one-house-and-buys-7-flats-with-capital-gains-tax-dept-denies-benefit-heres-what-itat-rules-4172450/

In a significant ruling that could influence how capital gains tax exemptions are interpreted, the Delhi bench of the Income Tax Appellate Tribunal (ITAT) has held that multiple adjacent residential units can be treated as a single “residential house” for claiming exemption under Section 54 of the Income-tax Act.