Bengaluru man wins tax dispute on ₹11.8 crore flat sale

A Bengaluru resident sold 17 apartments in Koramangala during FY 2019-20, earning capital gains of ₹11.8 crore.

He claimed Section 54 tax exemption by reinvesting all gains into five residential properties (four purchased, one constructed).

The income tax department initially rejected the exemption, restricting it to one property and adding ₹5.88 crore back to his income.

The Income Tax Appellate Tribunal (ITAT) ruled that each sale was an independent transaction, allowing exemptions on multiple properties.

The landowner won the dispute and did not have to pay tax on the capital gains.