Section 54 of Income Tax Act, 1961— Exemption u/s 54— In the instant case, the only dispute is with regard to eligibility of claim of deduction u/s.54 of the Act in respect of two new residential properties purchased by the assessee out of sale consideration of old property.

We find that the Section 54 of the Act uses the expression “a residential house’’. This expression has been interpreted by the Courts to include investment being made in residential house / houses in order to be eligible to claim deduction u/s.54 of the Act and it does not restrict the claim of deduction u/s.54 of the Act to one house only. We also find that the amendment which had been brought in the Act is only w.e.f. A.Y.2015-16 and cannot be made applicable to the year under consideration as has been held in the aforesaid decision.

We hold that assessee is entitled for deduction u/s.54 of the Act in the instant case.[SHRI MAHENDRA HASTIMAL MEHTA VERSUS ITO - 20 (2) (2) , MUMBAI] [2019] 17 ITCD Online (31) [ITAT MUMBAI]