Two distinct flats situated on separate floors and lacking structural or functional integration could not be treated as one residential unit: Delhi HC.
In a recent judgment, the Hon’ble Delhi High Court clarified the scope of Section 54F of the IT Act, holding that the exemption for long-term capital gains is restricted to a single residential house. The Court upheld the Income Tax Appellate Tribunal’s decision that two distinct flats, situated on separate floors and lacking structural or functional integration, could not be treated as one residential unit.
This ruling reinforces the legislative intent, emphasizing a precise interpretation of “a residential house” to maintain statutory integrity and uphold the principles of tax law.
