Hyderabad tribunal rejects one crore eighty lakh rupees tax exemption over uninhabitable proof failure

The Income Tax Appellate Tribunal in Hyderabad upheld the denial of a one crore eighty lakh rupees tax exemption sought under Section 54F of the Income Tax Act. The ruling was issued because the assessee failed to provide sufficient evidence demonstrating that five separate villas were uninhabitable at the time of acquisition.

This decision reinforces strict evidentiary standards required when taxpayers attempt to claim capital gains exemptions involving multiple residential units. Tax authorities and tribunals continue to scrutinize claims where property habitability status lacks concrete proof.

Taxpayers filing similar capital gains claims must ensure robust documentation and expert verification to substantiate property conditions. Practitioners need to review this precedent when advising clients on multi-property exemption eligibility.