Different Floors of Single Building cannot be Counted as Separate “Residential Houses” u/s 54F of Income Tax Act: Delhi HC

The Delhi High Court has delivered a ruling that limits the scope of capital gains exemption under Section 54F of the Income Tax Act. The court held that multiple floors within a single building cannot be treated as separate "independent houses" for the purpose of claiming separate capital gains exemptions. This decision clarifies that the tax benefit under Section 54F, which allows exemption on long-term capital gains if invested in a new residential house, is intended for the acquisition of a single, distinct residential unit, rather than multiple dwelling units within the same structural entity. This interpretation aims to prevent potential misuse of the tax provision by taxpayers.