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Appeal of the Assessee is partly allowed.The assessee has further sold both the flats through two separate sale deeds. It is an admitted fact that assessee has purchased residential flat at Noida within the permitted time period from the sale of the residential flats and the assessee isentitled for exemption under section 54 of the I.T. Act, 1961.

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Sec. 54 of Income Tax Act, 1961— Exemption — There is no restriction that capital gain arising from sale of more than one residential houses cannot be invested in one residential house,in case, capital gain arising from sale of more than one residential houses is invested in one residential house, the condition that capital gain from sale of a residential house should be invested in a new residential house gets fulfilled in each case individually because the capital gain arising from sale of each residential house has been invested in a residential house, therefore, even if two flats are sold in two different years, and the capital gain of both the flats is invested in one residential house, exemption u/s 54 will be available in case of sale of each flat provided the time limit of construction or purchase of the new residential house is fulfilled in case of each flat sold. - SHRI VIJAY KUMAR WANCHOO V/s ITO - [2020] 27 ITCD Online 022 (ITAT-DELHI)