BENEFIT OF SEC 54 AVAILABLE FOR MORE THAN ONE HOUSE

In the case of CIT vs. D. Anand Basappa, Karnataka High Court has held that benefit under section 54 of the Income Tax Act 1961 in respect of long term Capital Gain arising on transfer of a residential property in case of purchase/construction of a residential house can be claimed for more than one house. This judgement has clarified that the word 'a' used in Section 54 does not mean one. The expression 'a' residential house should be understood in a sense that building should be of residential in nature and 'a' should not be understood to indicate a singular number. Section 13
of the General Clauses Act declare that whenever singular is used for a word, it is permissible to include the plural.