ITAT Allows Rs. 1.3 Crore LTCG Exemption to Husband-Wife Despite Sale of 2 Properties

The Income Tax Appellate Tribunal (ITAT) granted a ₹1.3 crore Long-Term Capital Gains (LTCG) exemption to a couple who had sold two properties and subsequently reinvested the proceeds into a single new house. The tribunal accepted the couple's claim of a genuine reinvestment, interpreting Section 54 of the Income Tax Act in a way that accommodates joint ownership and the reinvestment of capital gains from multiple properties into one residential property. This decision provides welcome clarification on the applicability of Section 54 benefits in situations involving jointly owned properties and collective reinvestment in a single new dwelling, promoting a more inclusive understanding of the tax law.