‘Makaan in registered deed was not a residential house’: Delhi HC upholds ITAT’s Interpretation of ‘Residential House’ for S. 54F Exemption

The Delhi High Court upheld the ITAT’s interpretation of a "residential house" under Section 54F of the Income Tax Act for exemption on long-term capital gains. In a case involving Makaan, the court agreed with ITAT’s decision that a registered deed for a property, even if described as a residential house, did not qualify for the exemption as it failed to meet specific conditions under Section 54F. The judgment clarifies the criteria for claiming exemptions related to the sale of residential property, highlighting the need for strict adherence to definitions under the law for claiming tax benefits under capital gains exemptions.