Multiple flats in same address are eligible for exemption under S 54F for Capital Gain Tax

law1By Accommodation Times Bureau

In the case of CIT Vs Gumanmal Jain, (2346) Madras High Court (178), Hon’ble High Court held that “We therefore have no hesitation in holding that in the instant case the assessee having got 15 flats along with his two sons will not disentitle him from getting the benefit under Section 54-F of the IT Act only on the ground that all the 15 flats are not in the same Block, particularly in the light of the admitted factual position that all the 15 flats are located at the same address namely, ‘Rain Forest’ No.57, New No.36, Taylor’s Road, Rem Street, Kilpauk, Chennai 600 010.”

The court further observed that “We also noticed that in all the judgement, irrespective of whether it is under Section 54 or 54-F of IT Act, which we have discussed supra, the judgement have proceeded only on the basis that the flats [being more than one flat] are in the same location/address. Therefore, once it is in the same location/address, the question of whether it is in the same block or in different blocks does not arise for consideration. To our mind, as long as all the flats are in the same address/location even if they are located in separate blocks or towers it does not alter the position. In the instant case, after all, all the flats are a product of one development agreement of the same piece of land being said land. Therefore, we make it abundantly clear that even if flats/apartments are in different blocks and different towers as long as they are in same address/location it does not dis-entitle the Assessee from getting the benefit of Section 54-F of IT Act.”

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