TMI Blog2014 (8) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... with M/s.Mount Housing Infrastructure Ltd., is that the assessee will receive 43.75% of the built-up area after development, which is construed as one block, which may be one or more flats - the built up area got translated into five flats - the transaction was not with regard to the number of flats but with regard to the percentage of the built up area, vis-a-vis, the Undivided Share of Land – thus, the property should be assessed as one unit, even though different flats are available – Decided against Revenue. - Tax Case (Appeal) No.301 of 2014 - - - Dated:- 18-8-2014 - R. Sudhakar And G. M. Akbar Ali,JJ. For the Appellant : Mr. T. R. Senthil Kumar Standing Counsel for Income Tax JUDGMENT (Delivered by R. Sudhakar,J.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tructure Ltd. The assessee claimed exemption under Section 54F of the Income Tax Act on the value of the five flats. According to the assessee there were no capital gains whatsoever left for assessment. 3. Before the Assessing Officer, two issues were raised, one on the value of the built-up area of the five flats and the other was whether the assessee would be entitled to the benefit of Section 54F of the Income Tax Act in respect of the five flats. The Assessing Officer granted the benefit of capital gains in respect of one flat and that too on the higher extent with regard to the floor space, viz., 2413.36 sq.ft.. Aggrieved by the same, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). 4. The Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal held as follows: 8. Their Lordships has clearly held in the above judgment that 'residential house' in the context could not be construed as a singular. In the said case also, claim for exemption was with regard to four flats in lieu of share in land, but the claim was under section 54 of the Act and not under section 54F of the Act. However, in our opinion the meaning given to the expression a residential house will apply paripassu to Sec.54F also, since the expression used here is also 'a residential house'. New asset defined in the sec.54F, as 'a residential house' has also to be understood in the plural. It is not necessary that all residential units should have a single door number allotted to it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act should not be construed as one unit, even though different flats are constructed; but it should be construed as one residential flat, as every residential apartment contains separate kitchen, entrance etc. He also pointed out to the amendment brought to Section 54F of the Income Tax Act vide Finance (No.2) Act, 2014 with effect from 01.04.2015, wherein the word 'a residential house' is substituted to 'one residential house'. Hence, the assessee is not eligible for exemption under Section 54F of the Income Tax Act. 8. We have heard the learned Standing counsel appearing for the Revenue at length and perused the materials placed before this Court and the decision relied on by the Tribunal in the case of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-section shall apply where (a) the assessee, (i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset ; or (ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset ; or (iii) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; and (b) the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head Income from house property . 9. It is relevant to note herein that an amendment was made to the above-sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... five flats. Hence, we are of the opinion that the transaction in this case was not with regard to the number of flats but with regard to the percentage of the built up area, vis-a-vis, the Undivided Share of Land. 11. In similar circumstances, this Court, by order dated 04.01.2012 in T.C.(A)No.656 of 2005 held as follows: The above provision refers to a residential house meaning thereby that even if there are four different flats and if it is considered for the property assessed as one unit and one door number is given, it should be construed as a residential unit, namely, one unit. In that sense, the said provision is available to the assessee. 12. In the decision reported in (2012) 75 DTR 56 (Dr.(Smt.) P.K.Vasanthi Rangarajan, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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