#Residential Property

The ITAT Bangalore has ruled that capital gains from the sale of multiple residential properties qualify for Section 54 exemption on a per-property basis, allowing taxpayers to reinvest gains from each sold flat into separate residential purchases without being capped at one house. This clarifies a long-standing ambiguity and benefits high-net-worth individuals and real estate investors who liquidate multiple units in a single financial year.

Madhya Pradesh High Court halts auction of borrowers' residential property under SARFAESI Act, ruling that procedural fairness mandates suspension when Debt Recovery Tribunal is non-functional and 75% of the loan has already been repaid. The decision underscores the need for banks to consider partial repayments before enforcing coercive recovery measures.

The ITAT Mumbai has ruled that payments made toward a new residential property before the one-year window preceding the sale of the old asset still count toward the cost of acquisition for Section 54 exemption. This clarifies that the entire investment, not just amounts paid within the statutory period, can be aggregated to fully offset long-term capital gains, benefiting taxpayers who make advance payments in real estate transactions.

ITAT Pune holds that full investment in residential property within stipulated period entitles deduction under Section 54F, even without full deposit in capital gains account scheme.

Supreme Court holds that leasing a residential flat does not automatically make buyer a non-consumer; burden lies on seller to prove dominant commercial purpose.