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All Apartments received under Development Agreement would become “One House”

In Sudhir Naik HUF and others vs. Income Tax Officer, the Hyderabad ITAT held that all apartments received under a development agreement would become one house for the purpose of granting exemption under section 54F of the Income Tax Act even though the same are independent units. 

In the instant case, one Mr. Ramachandra Naik expired on 09-07-1994. He has four members in his family and the same group entered into an agreement with M/s. Siri Sampada Constructions & other and has given 8,365 Sq. Yds., of land for development. 

The developer constructed 30 flats in block-A which is fully owned by land owners and 100 flats in block-B, out of which the owners got twenty-one flats towards their share from this they sold twenty-four flats before March, 2003.

Article referred: http://www.taxscan.in/all-apartments-received-under-development-agreement-would-become-one-house-for-the-purpose-of-s-54-exemption-itat/17894/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+Taxscan+%28Top+Stories+%E2%80%93+Taxscan+%7C+Simplifying+Tax+Laws%29

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