Entitlement to sec. 54F relief remains intact even if a residential house is used commercially

Section 54F of the Income-tax Act, 1961 - Capital gains - Exemption of, in case of investment in residential house (Residential house) - Assessment year 2007-08 - Whether where building has been constructed for residential use with all amenities like kitchen, bathroom, etc., which are necessary for residential accommodation, in such a case, even if it is used as a school or for any other commercial purpose, it cannot lose its character as a residential building so as to claim deduction under section 54F - Held, yes - Whether 'a residential house' does not mean a single residential house and, thus, where assessee constructs or receives a number of flats adjacent to each other or in different floors of same building then also assessee would be entitled for deduction under section 54F - Held, yes [Paras 10 and 11] [Matter remanded]

Refer:[2014] 45 taxmann.com 30 (Hyderabad - Trib.)

IN THE ITAT HYDERABAD BENCH 'A'
N. Revathi
v.
Income-tax Officer, Ward-6(4), Hyderabad