Dhruval Kirit Sukhadia vs. The Deputy Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee purchased two bungalows from the builder and instructed the builder to combine the same to make them one residential unit. The assessee claimed a deduction under section 54F of the Income Tax Act, 1961. The Lower Authorities disallowed the claim of deduction in respect of the second unit. However, the builder provided a certificate stating that the two bungalows were clubbed as a single residential unit with only one kitchen and one entrance. The builder also confirmed that the property was constructed as a single unit and there were no internal walls between the bungalows.…

Legal Issues

• 1. Whether the property purchased by the assessee, though shown in the records as two bungalows, can be treated as a single residential unit for the purpose of claiming deduction under section 54F of the Act?

Judgment Outcome

Decided in favour of Assessee.

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