Use of Two Flats in Different Floors as Unified Residence Impractical: Delhi HC upholds Disallowance of S. 54 Capital Gains Exemption

The Delhi High Court upheld the disallowance of capital gains exemption under section 54 for a taxpayer who claimed a tax exemption for the purchase of two flats on different floors as a unified residence. The court found that the concept of a unified residence was impractical in this case, as the flats were not physically connected and could not be considered as a single dwelling. This ruling clarified that taxpayers must strictly adhere to the provisions under section 54 to claim capital gains exemption.