TMI Blog2012 (9) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. At this point of time, it is not possible to verify the condition of the building and or to whether it was habitable at the time of its purchase. In the circumstances, the benefit of doubt should go in favour of the assessee. On the material available on record, we are satisfied that the assessee has fulfilled the conditions for grant of exemption u/s 54F. We therefore, direct that the exemption claimed be allowed - Decided in favor of assessee - I.T.A.No.183(B)/2011 - - - Dated:- 29-6-2012 - SHRI N. BARATHVAJA SANKAR, AND SHRI N.V. VASUDEVAN, JJ. Assessee by : Shri S.Parthsarathi, Advocate Revenue by : Shri B.Saravanan, JCIT O R D E R PER SHRI N.V.VASUDEVAN, JM This is an appeal by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the residential house may not be fit for habitation. He therefore, called upon the assessee to prove that the residential house referred to in the sale deed was fit for habitation. Thereafter, the AO observed as follows; Though, it is stated that there is a 4 squares building residential house, considering the fact that the extent of land is half acre, the assessee was required to prove that actually there is a residential house fit for habitation in existence on that land. The assessee did not produce any evidence, such as whether the house has an electrical connection or has the amenities required for the purpose of the same being used for residential purpose. In the case o the assessee, the residential house claimed is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se. It is further, seen that as on 06-12-2004, the entire property was in a residential zone. In the light of the above evidence available on record, the question that needs to be decided is as to whether the assessee had purchased residential house, so as to claim exemption u/s 54F of the Act. 7. On this aspect, as we have already seen, the AO proceeded on the basis that 4 square building in an area of half acre of land cannot be considered as habitable. In our opinion, this is hardly the basis on which one can conclude that the assessee did not purchase a residential house. The CIT(A) proceeded on the basis that the assessee should prove that the residential house was fit for habitation, because the house was too small to exists on h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid decision was rendered in the context of Sec.54 of the Act. Under section 54 of the Act, if transfer of a long term capital asset being buildings or lands appurtenant thereto and being a residential house, the income of which is chargeable to tax under the head Income from house property is sold and there results capital gain on such sale, the exemption is allowed subject to fulfillment of certain conditions. Sec.54F with which we are dealing the present case, only talks of purchase of a residential house and there is no condition that the house should be a house income from which is chargeable to tax under the head Income from house property . Therefore, the aforesaid decision cannot be applied to the facts of the present case. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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