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2016 (8) TMI 1545 - MADRAS HIGH COURTExemption claimed u/s 54F - assessee claims relief of exemption of tax in respect of a residential house - possession of two residential houses on the date of transfer of property thus denied the exemption - one house is in the name of the assessee's wife - owner as defined under Section 27(i) of the Act, for the purpose of deemed to be the owner of the property - HELD THAT:- In this case, as categorically held by the Commissioner of Income Tax (Appeal) and the Tribunal that Section 27(1) of the Act is a deeming provision applicable only for Sections 22 to 26, in computing the annual value of the property and as such deeming provision cannot be extended to deny the exemption under Section 54F of the Act. We are of the considered view that Section 54F of the Act, for granting exemption applies for the purpose of capital gain of transfer of certain capital assets not to be charged in the case of investment in residential house. To this context, Section 54F would apply as an independent provision, to the instant case. Therefore, the Commissioner of Income Tax (Appeal) and the Income Tax Appellate Tribunal have rightly come to the conclusion that Section 27(i) of the Act is not applicable to the facts of the present case - we are not inclined to entertain the instant appeal and the substantial questions of law raised in this Tax Appeal, is answered against the Revenue.
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