Tax Relief Denied on One of Two Flats Bought After Mumbai Commercial Sale, Tribunal Rules
A man sold six commercial units in Mumbai, generating long-term capital gains of roughly Rs 5 crore. He sought a deduction for that full amount under Section 54F by investing in residential property. He bought two flats on separate floors of the same building, with both agreements executed and registered on the same day. The tax authority denied relief on one of the flats, about Rs 2.5 crore, and the matter reached the Income Tax Appellate Tribunal. The case turns on whether the second purchase qualifies for the exemption.
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