“Section 54(1)”

Section References (mined)Section 54Section 54(1)79 judgments

The decision most relied on for Section 54(1) is Mysore Minerals Ltd. v. CIT (239 ITR 775), cited in 215 judgments on BharatTax.

Leading authorities on Section 54(1)

Mysore Minerals Ltd. v. CIT

239 ITR 775 · 1999 · Supreme Court

215

citing judgments

For income tax purposes, the 'owner' of a property is the person who is entitled to receive income in their own right, bears the risks incidental to ownership, and utilizes the asset, even if the sale deed is not formally registered. This beneficial ownership is sufficient for claiming depreciation or capital gains exemption under relevant sections.

CIT v. Manjula J. Shah

355 ITR 474 · 2013 · High Court

113

citing judgments

For capital assets acquired by gift or will, the indexed cost of acquisition under Section 48 is computed with reference to the year the previous owner first held the asset. The period of holding for determining if an asset is long-term also includes the previous owner's holding period, as per Section 2(42A).

CIT v. K.G. Rukminiamma

331 ITR 211 · 2011 · High Court

104

citing judgments

For capital gains exemption under Sections 54 and 54F of the Income Tax Act (prior to the 2015 amendment), the expression "a residential house" includes multiple residential units and should not be construed in the singular, by applying Section 13 of the General Clauses Act.

CIT v. D. Ananda Basappa

309 ITR 329 · 2009 · High Court

citing judgments

For exemption under Section 54, the expression 'a residential house' allows for investment in multiple residential units that form one functional unit, as 'a' does not imply a singular number. The amendment to Section 54, effective from April 1, 2015, is prospective.

CIT v. Gita Duggal

357 ITR 153 · 2013 · High Court

citing judgments

For capital gains exemption under sections 54 and 54F, the term "a residential house" does not restrict the exemption to a single residential unit and can include multiple contiguous or combined residential units treated as one house.

CIT v. Kamal Wahal

351 ITR 4 · 2013 · High Court

citing judgments

An assessee is eligible for capital gains exemption under Sections 54 and 54F even when the new residential house is purchased in the name of their spouse, provided the investment comes from the assessee's own funds. This allows for a purposive construction of these provisions.

CIT v. Rajesh Kumar Jalan

286 ITR 274 · 2006 · High Court

citing judgments

Section 139(4) of the Income-tax Act, which allows for filing a belated return, acts as a proviso to Section 139(1). Consequently, the time limit for depositing amounts or utilizing funds to claim exemptions, such as under Section 54, extends up to the due date for filing a return under Section 139(4).

CIT v. Gurnam Singh

327 ITR 278 · 2010 · High Court

citing judgments

For capital gains exemption under Section 54F, the new residential house is not required to be purchased exclusively in the assessee's own name; acquisition in joint names or in the name of a spouse qualifies for the exemption. This principle also applies to Section 54 due to their pari materia nature.

Judgments citing Section 54(1)

Kamlesh Khanna, New Delhi vs. ACIT, Circle-40(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 7841/DEL/2019[2015-16]Status: DisposedITAT Delhi24 Jul 2025AY 2015-16

Bench: Shri Anubhav Sharma & Shri Amitabh Shukla

For Appellant: Sh. Salil Kapoor, Adv &For Respondent: Ms. Harpreet Kaur Hansra, Sr. DR

Section 143(1)Section 143(3)Section 54

record which may prove that both the floors are contiguous units converted into one residential house. After the amendment in the provisions in section 54(1) w.e.f. 01.04.2015 i.e. AY 2015-16 deduction u/s 54 is available in respect of one residential house only situated in India. Thus ... CBDT circular no. 1/2015 dated 21.01.2015 and amended provisions of section 54(1) appellant is entitled to claim deduction u/s 54(1) in respect of one residential house only therefore AO is justified in disallowing the claim in respect of second residential unit and disallowance made

Assistant Commissioner of Income Tax, Circle-1(1)(1), Meerut vs. Prem Sapra, New Delhi

The appeal of the revenue is dismissed

ITA 1739/DEL/2024[2021-22]Status: DisposedITAT Delhi20 Jun 2025AY 2021-22

Bench: Smt. Annapurna Gupta & Ms. Madhumita Royassessment Year: 2021-22

Section 143(3)Section 54

Apex Court in CIT v. T.N. Aravinda Reddy (1979) 120 ITR 461 where it has been held that the word 'purchase occurring in section 54(1) of the Act had to be given its common meaning, viz., buy for a price or equivalent of price by payment in kind ... transferee, the assessee, "purchased" the share of each of his brothers and the assessee was, therefore, entitled to the relief under section 54(1). The question now is no longer res integra having regard to the decision of the Apex Court in CIT v. Podar Cement

Arun Dwivedi, New Delhi vs. ACIT, Circle-9(2), New Delhi

ITA 6293/DEL/2018[2014-15]Status: DisposedITAT Delhi12 Jun 2025AY 2014-15

Bench: Shri Vimal Kumar & Shri Brajesh Kumar Singh

Section 142(1)Section 143(3)Section 54Section 56(2)(vii)

capital gain arisingfrom the transfer of long term capital asset at D-4,Vivekanand Puri, Lucknow was invested within the conditions specified in section 54(1) or 54(2) as the case may be.In view of the fact that the propertyat D-4, Vivekanand, Puri, Lucknow was sold

Raj Kumar, New Delhi vs. ITO, Ward-58(4), Delhi

In the result, the appeal of the assessee is allowed

ITA 3092/DEL/2024[2017-18]Status: DisposedITAT Delhi11 Jun 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri Amitabh Shukla

For Appellant: Shri Sandeep Sapra, Advocate

Section 143(3)Section 46ASection 48Section 54

ITA 3092/Del/2024 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘F’: NEW DELHI) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER

Murugan Doraisamy, Chennai vs. ITO, International Taxation Ward-1(2), Chennai

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 367/CHNY/2025[2022-23]Status: DisposedITAT Chennai14 May 2025AY 2022-23

Bench: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./I.T.A. No.367/Chny/2025 िनधा"रण वष"/Assessment Year: 2022-23 Murugan Doraisamy, Vs. The Income Tax Officer, 16, 17 & 18, Appasamy Towers, International Taxation Ward 1(2), Sir Thiyagaraya Road, Pondy Bazaar, Chennai. T. Nagar, Chennai 600 017. [Pan:Awkpm2217P] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri P. Ranga Ramanujam, Ca ""थ" की ओर से/Respondent By : Shri S. Senthil Kumaran, Cit सुनवाई की तारीख/ Date Of Hearing : 29.04.2025 घोषणा की तारीख /Date Of Pronouncement : 14.05.2025 आदेश /O R D E R Per S.S. Viswanethra Ravi: This Appeal Filed By The Assessee Is Directed Against The Final Assessment Order Dated 28.01.2025 Passed Under Section 143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961 [“Act” In Short] For The Assessment Year 2022-23. 2. The Assessee Raised 10 Grounds Of Appeal, Amongst Which, The Only Short Point Raised For Consideration Whether The Assessing Officer Is 2

For Appellant: Shri P. Ranga Ramanujam, CAFor Respondent: Shri S. Senthil Kumaran, CIT

Section 1Section 139(1)Section 143(3)Section 54Section 54(1)Section 54(2)Section 54F

Further, he argued that merely because the assessee has not been able to deposit in the capital gain account, the deduction under section 54(1) of the Act cannot be denied. He submits that it is a mere non-compliance of procedural requirement under section 54 ... examining the requirement of law under sub-section 1 of section 54F of the Act. He argued that the compliance of requirement under section 54(1) of the Act is mandatory and as to be construed as substantial compliance to grant the benefit of deduction. He submits that the Assessing

Income Tax Officer, Ward-2(1), Hyderabad vs. Narasimha Reddy Duthala, Hyderabad

ITA 1113/HYD/2024[2022-23]Status: DisposedITAT Hyderabad09 May 2025AY 2022-23

Bench: Shri Manjunatha G & Shri Ravish Sood

For Respondent: MS. M. Narmada, CIT-DR

Section 54Section 54F

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “B” BENCH: HYDERABAD BEFORE SHRI MANJUNATHA G, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD

Sanjeev Behl, Mumbai vs. Income Tax Officer Int Tax Ward, 1(2)(1), Mumbai

In the result, the appeal by the assessee is allowed

ITA 5345/MUM/2024[2016-17]Status: DisposedITAT Mumbai30 Apr 2025AY 2016-17

Bench: Shri Sandeep Singh Karhailshri Girish Agrawal

For Appellant: Shri K GopalFor Respondent: Shri Vijaykumar G Subramanyam, Sr.DR

Section 10Section 143(1)Section 144C(3)Section 147Section 148Section 2(24)Section 250Section 56Section 80

account in the Scheme can only be utilised for the purpose of purchase of the new residential house property as required in section 54(1) of the Act. Therefore, we do not find any basis in the findings of the learned CIT(A) in para 7.3.3 of the impugned order

Deputy Commissioner of Income Tax, Non-Corporate Circle 7(1), Chennai vs. Vellore Subramanian Saravanan, Chennai

In the result, appeal filed by the Re

ITA 1132/CHNY/2023[2015]Status: DisposedITAT Chennai25 Mar 2025

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. D. Anand, AdvocateFor Respondent: Ms. Anita, Addl. CIT

Section 54F

Whether, in computation of cost of new as Whether, in computation of cost of new asset contemplated in Section set contemplated in Section 54(1) of the Income Tax Act, the cost of land can be segregated from 54(1) of the Income Tax Act, the cost of land ... adjusted and/or set off against the capital gain is, the cost of the residential house that is purchased or constructed. Section 54(1) of the of the residential house that is purchased or constructed. Section 54(1) of the of the residential house that is purchased or constructed. Section 54

Sridhar Reddy Bayapu, Hyderabad vs. DCIT., Circle-3(1), Hyderabad

ITA 841/HYD/2024[2016-17]Status: DisposedITAT Hyderabad19 Mar 2025AY 2016-17

Bench: Us:

Section 139(1)Section 143(2)Section 143(3)Section 54Section 54F

paid to be builder on 18/11/2015 and there are no further payments till the end of the financial year. As per section 54(1), the appellant should have within a period of 3 years after sale of house property, constructed a residential house to be eligible for exemption U/s. 54

Jagdish Parshad Jain, Panipat vs. DCIT Central Circle Karnal, Karnal

In the result, the appeal of the assessee is allowed

ITA 3300/DEL/2024[2017-18]Status: DisposedITAT Delhi16 Jan 2025AY 2017-18

Bench: Shri M Balaganesh & Shri Vimal Kumarassessment Year: 2009-10 Shri Inamul Haq S/O Sh. Mohd. Vs. Income Tax Officer, Yamin, Vill.Megh Chhappar, Ward-2. Ambalaa Road, Saharanpur (U.P) Saharanpur Pan: Aaiph2840K (Appellant) (Respondent)

For Appellant: Shri Ankit Gupta, AdvFor Respondent: Ms. Harpreet Kaur Hansra, Sr. DR

Section 139(4)Section 143(2)Section 147Section 148Section 151Section 250(6)Section 50CSection 54Section 54FSection 54F(4)

regarding the investment in the name of his son, should be allowed, in view of the aforesaid jurisdictional precedence. (iv) That, as per section 54(1), the assessee should invest, "a residential house", cannot be read as one residential house and also it cannot be restricted, that, two houses

Vivek Gangadhar Mehendale, Santacruz, Mumbai vs. Income Tax Officer, Ward 22(3)(1), Piramal Chambers, Mumbai

In the result, the appeal of the assessee bearing ITA No

ITA 2644/MUM/2024[2014-15]Status: DisposedITAT Mumbai07 Oct 2024AY 2014-15

Bench: Shri Anikesh Banerjee & Miss Padmavathy S.

For Appellant: ShriAnil SatheFor Respondent: Ms. Rajeshwari Menon, SRDR

Section 139(1)Section 143(3)Section 147Section 148Section 250Section 54Section 54FSection 64(1)

sense that building should be residential in nature and “a” should not be understood to indicate a singular number. The combined reading of sections 54(1) and 54F of the Income-tax Act discloses that, a non-residential building can be sold, the capital gain of which can be invested ... needs in event of separation, purchase more than the residential building, it cannot be said that the benefit of exemption is denied under section 54(1) of the Income-tax Act. 8. On facts, it is shown by the assessee that the apartments are situated side by side. The builder

Income Tax Officer, Ward-6(1), Hyderabad vs. Indira Vengala, Hyderabad

ITA 587/HYD/2024[2018-19]Status: DisposedITAT Hyderabad25 Sept 2024AY 2018-19

Bench: Shri Mahavir Singh, Vice- & Shri Manjunatha G.Assessment Year – 2018-19 Income Tax Officer, Late Indira Vengala, Hyderabad. Ward 6(1), Hyderabad. Represented By Legal Heir Vengala Sanjeev Kumar, Hyderabad. Pan : Bbopv2537D (Appellant) (Respondent) C.O.No.10/Hyd/2024 Arising Out Of Ita No.587/Hyd/2024 Assessment Year – 2018-19 Late Indira Vengala, Income Tax Officer, Hyderabad. Ward6(1), Hyderabad. Represented By Legal Heir Vengala Sanjeev Kumar, Hyderabad. Pan : Bbopv2537D (Cross Objector) (Respondent) Assessee By: Shri Pavan Kumar Gorti, Ca. Revenue By: Shri Srinath Sadanala, Sr.A.R. Date Of Hearing: 23.09.2024 Date Of Pronouncement: 25.09.2024

For Appellant: Shri Pavan Kumar Gorti, CAFor Respondent: Shri Srinath Sadanala, Sr.A.R

Section 147Section 54(1)

आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A” , HYDERABAD BEFORE SHRI MAHAVIR SINGH

Chandra Bhavani Sankar, Chennai vs. ITO, Non Corp Ward 16(2), Chennai

In the result, appeal filed by the assessee is allowed

ITA 101/CHNY/2024[2012-13]Status: DisposedITAT Chennai09 Aug 2024AY 2012-13

Bench: Shri Aby T. Varkey & Shri Amitabh Shuklaआयकर अपील सं./Ita No.101/Chny/2024 िनधा"रण वष"/Assessment Year: 2012-13 V. Shri Chandra Bhavani Sankar, The Ito, 1/3A, Vinayakar Koil Street, Ncw-16(2), Thalambur, Chennai. Chennai-600 130. [Pan: Aeypb 1764 J] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri Sathyanarayanan, AdvFor Respondent: Shri P. Sajit Kumar, JCIT

Section 54(1)Section 54FSection 68

Case Appeal No.520 of 2017 dated 06.08.2018, wherein, the Hon’ble Madras High Court on similar issues has held as under: 14. Under Section 54(1) of the said Act, the capital gain arising from transfer of a residential house is not to be charged to income tax as income ... feasible, be interpreted and/or construed in accordance with plain meaning of the language used in those provisions. 16. On a plain reading of Section 54(1) of the said Act, the transfer of a long term asset, which would include a residential house, would be chargeable to income

Shri Jignesh Jaysukhlal Ghiya, Vadodara vs. The DCIT Cirlce-4(2), Vadodara

In the result, the appeal filed by the Assessee is allowed

ITA 324/AHD/2020[2013-14]Status: DisposedITAT Ahmedabad07 Aug 2024AY 2013-14

Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)

Section 139(1)Section 139(4)Section 143(3)Section 54Section 54F

adjusted and/or set off against the capital gain is, the cost of the residential house that is purchased or constructed. Section 54(1) I.T.A No. 324/Ahd/2020 A.Y. 2013-14 Page No 10 Shri Jignesh Jaysukhlal Ghiya. vs. DCIT of the said Act is specific and clear. It is the cost ... construction, the cost of labour and any other cost relatable to the acquisition and/or construction of the residential house. 21. A reading of Section 54(1) makes it amply clear that capital gain is to be adjusted against the cost of new residential house. The condition precedent for such adjustment

Shipra Bhagwan Chandra Shukla, Bandra West vs. Income Tax Officer Ward 25(1)(2) Mumbai, Mumbai

Appeal is dismissed in above terms

ITA 4532/MUM/2023[2015-16]Status: DisposedITAT Mumbai26 Jul 2024AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Omkareshwar Chidara

For Appellant: Shri Divyesh Shah, C.AFor Respondent: Shri Prashant Mahajan, Sr. AR

Section 143(3)Section 54Section 54(1)

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “G” BENCH : MUMBAI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI OMKARESHWAR

Rajendra Agrawal, Delhi vs. ITO Ward-30(2), Delhi

In the result, the appeal is allowed

ITA 2272/DEL/2024[2012-13]Status: DisposedITAT Delhi26 Jul 2024AY 2012-13

Bench: BEFORESHRI VIKAS AWASTHY (Judicial Member), SHRI AVDHESH KUMAR MISHRA (Accountant Member)

Section 143(3)Section 263Section 54

Bench of this court in case of Smt KG Rukminiamma supra dealt with the meaning of expression 'a residential house' used in Section 54(1) of the Act while taking into account Section 13(2) of the General Clauses Act, 1897 held that unless there is anything repugnant ... different High Courts including this court and with a view to give definite meaning to the expression 'a residential house', the provisions of Section 54(1) were amended with an object to restrict the plurality to mean singularity by substituting the word 'a residential house' with the word 'one residential

Deepankar Mogha, Mumbai vs. The Assisatnt Commissioner of Income Tax, Circle 17(1), Mumbai

Appeal is allowed

ITA 4801/MUM/2023[2017-18]Status: DisposedITAT Mumbai10 Jul 2024AY 2017-18

Bench: Shri Satbeer Singh Godara (Jm) & Shri Girish Agrawal (Am)

Section 143(3)Section 27Section 54

case of CIT vs. T.N. Arvinda Reddy (120 ITR 46) in which Hon'ble Supreme Court held that the word "purchase" appearing in section 54(1) has to be given its common meaning i.e. buy for a price or equivalent of price by payment in kind or adjustment towards ... covering various heads, between 3.4.2018 to 17.1.2019 in respect of the new residential house which had to be constructed by the developer concerned. Section 54(1) stipulates time period of “three years” for the period of construction of the new residential house meaning thereby that even if it is held

ACIT, Circle, Shimla vs. Shri Vinod Sharma, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 1449/CHANDI/2019[2015-16]Status: DisposedITAT Chandigarh09 Jul 2024AY 2015-16

Bench: Shri A.D. Jain & Dr Krinwant Sahayआयकर अपील सं./ Ita No. 1449/Chd/2019 "नधा"रण वष" / Assessment Year: 2015-16 The Acit, Vs. Shri Vinod Sharma, बनाम B-1/3, Circle, Safdarjang Enclave, Shimla New Delhi 110029 "थायी लेखा सं./Pan No: Abkps1560N अपीलाथ"/ Appellant ""यथ"/ Repsondent (Hybrid Mode ) "नधा"रती क" ओर से/Assessee By : Sh. Vishal Mohan, Sr. Advocate With Shri Ahninav Bazwaria, Advocate राज"व क" ओर से/ Revenue By : Smt. Kusum Bansal, Cit Dr सुनवाई क" तार"ख/Date Of Hearing : 10.06.2024 उदघोषणा क" तार"ख/Date Of Pronouncement : 09.07.2024

For Appellant: Sh. Vishal Mohan, Sr. AdvocateFor Respondent: Smt. Kusum Bansal, CIT DR

Section 54F

आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘B’, CHANDIGARH

Income Tax Officer, Pune vs. Prakash Ramkrishna Pophale, Pune

In the result, the appeal filed by the Revenue is dismissed

ITA 283/PUN/2024[2017-18]Status: DisposedITAT Pune25 Jun 2024AY 2017-18

Bench: Shri R. K. Panda & Shri Vinay Bhamoreassessment Year : 2017-18

For Appellant: Shri Prasad BhandariFor Respondent: Shri Sourabh Nayak, Addl.CIT

Section 133(6)Section 143(2)Section 54Section 54(1)

informed that no completion certificate has been issued for the construction activity on plot No.4. The Assessing Officer analyzed the provisions of section 54(1) of the Act, according to which the construction should be completed within three years from the date of transfer of original asset. He noted that

Cheryl Oscar Pereira, Mumbai vs. Deputy Commissioner of Income Tax, Circle - 13(1)(2), Mumbai

In the result, appeal of the assessee bearing ITA No

ITA 1013/MUM/2024[2015-2016]Status: DisposedITAT Mumbai18 Jun 2024AY 2015-2016

Bench: Shri Anikesh Banerjee & Shri Gagan Goyal

For Appellant: Shri Madhur AgarwalFor Respondent: Shri H.M. Bhatt (SR. DR.)

Section 143(3)Section 250Section 54Section 54(1)Section 54F

Perlin Cosmeceuticals Pvt. Ltd. Denial of Claim of exemption u/s 54: 2. The Ld. CIT(A) failed to appreciate the language used in section 54(1) whereby the exemption is available to the assesse in respect of transfer of any number of long term capital assets being residential houses ... Pillaiv.Income-tax Officer, Ward 19(3)(2), Mumbai, [2011] 44SOT617 (Mum.). The relevant paragraph is as follows:- “4.1 A perusal of provisions of section 54(1) which has been reproduced at page 2 earlier shows that capital gain arising from transfer of a long-term capital asset being a residential