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2014 (10) TMI 1073 - AT - Income TaxLTCG - Deduction u/s 54-F - exemption on capital gains on sale of flat on acquisition of two houses - HELD THAT:- Assessee fairly conceded that this issue is covered in favor of the Revenue by the decision of the Punjab and Haryana High Court in the case of Pawan Arya vs. CIT [2010 (12) TMI 44 - PUNJAB AND HARYANA HIGH COURT] stating as regards claim for exemption against acquisition of two houses u/s 54 of the Act, the same is not admissible in plain language of statute. As in CIT vs. D. Ananda Basappa [2008 (10) TMI 99 - KARNATAKA HIGH COURT] referred to in the impugned order, exemption against purchase of two flats was allowed having regard to the finding that both the flats could be treated to be one house as both had been combined to make one residential unit. The said judgment, thus, proceeds on a different fact situation. Status of assessee as 'HUF' instead of 'Individual' - ownership in land in question - During the assessment proceedings itself, assessee came to know about the correct legal position that the subject property belongs to the individual and not to HUF and made detailed submissions supported by evidences to establish that the impugned land was the property of the “individual” and not the property of HUF and capital gain tax liability can not be raised in its hands. Following pleadings and evidences would establish that the land in question was the property of individual and not the property of HUF and thus, any capital gain arising on the transfer of such land would not be the income of the HUF. As decided in Khimji Teju Kaya reported [1977 (11) TMI 26 - BOMBAY HIGH COURT] held that self acquired property of the father bequeated to Son by Will would constitute individual property and even if income from such property was shown in the return as HUF income, the income from that property is to be assessed in individual capacity. We also find that Ld. Counsel of the assessee at the time of hearing has also filed the copy of income tax return of Sh. Sunny Choudhary, who is brother of the assessee and other co sharers which shows that the same was filed in the capacity of "individual". Thus we find that both the assessees come under the individual capacity instead of HUF category.
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