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2015 (11) TMI 1847 - AT - Income TaxExemption claimed u/s 54F - reinvestment made in purchase of house property - Real ownership - 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 - AO Rejected the claim of the assessee because as per Section 27(i) of the Income Tax Act ownership of the property lies with the assessee - HELD THAT:- It is a well recognized rule of interpretation endorsed by various higher judiciaries that a fiction created by any provisions of the Act cannot be super imposed on another provisions of the Act which has a fiction. Section.54F of the Act is a provision granting deduction to the assessee and therefore, it has a fiction. Hence, while interpreting the provision 54F of the Act, any other provision of the Act, which has a fiction, cannot be super imposed. Hence, in the given case before us, for the purpose of Section.54F of the Act, it has to be construed that the assessee is not the owner of the residential house at 24, Vijayaraghavachari Road, T Nagar, Chennai-17 and therefore he has only one house, accordingly he is the entitled to claim of exemption U/s.54F of the Act as held by the Ld. CIT (A). Hence, we do not find it necessary to interfere with the order of the Ld. CIT (A). - Decided against revenue.
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