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2019 (4) TMI 1016 - AT - Income TaxExemption u/s 54F - construction of new residential house, having not been completed within the stipulated period and the assessee having not got the possession of the said new house, the requirement for claiming exemption under section 54F was not satisfied - HELD THAT:- CIT(Appeals), found that the entire amount was invested by the assessee in purchase of a new residential house within the stipulated period and the assessee, therefore, had satisfied the requirement for claiming exempt ion under section 54F. MRS. HILLA JB. WADIA [1993 (3) TMI 7 - BOMBAY HIGH COURT] wherein it was held that the only requirement for claiming exemption under section 54F is to make the investment in purchase of a residential house within the stipulated period and there is no requirement that the construction of new house should be completed within that period and the assessee gets possession of the said flat. The reason given by the Assessing Officer for denying the claim of the assessee for benefit under section 54F was that two separate flats were purchased by the assessee having separate entrance and the same being incapable of joining together could not be treated as one residential house for claiming exemption under section 54F. As rightly contended by the assessee, this issue also now stands covered in favour of the assessee by the decision of the Hon’ble Karnataka High Court in the case of CIT –vs- Smt. K. G. Rukminiamma [2010 (8) TMI 482 - KARNATAKA HIGH COURT] and CIT –vs. - Syed Ali Adil [2013 (6) TMI 278 - ANDHRA PRADESH HIGH COURT] wherein it was held that the expression “a residential house” used in section 54 necessarily has to include buildings or land appurtenant thereto and it cannot be construed as one residential house. As further held in the said judicial pronouncements, section 54 only requires that property purchased by the assessee out of sale proceeds should be of residential nature and the fact that residential house consisted of several independent units could not be an impediment for granting relief under the said section, even if such independent units were situated side by side on different floors and were purchased under separate sale deeds. Keeping in view the legal position emanating from these judicial pronouncements, we are of the view that the assessee is entitled for exemption under section 54F - Decided in favour of assessee.
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