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2020 (8) TMI 144 - AT - Income TaxExemption u/s 54F - two residential units purchased during the year - whether the assessee can claimed deduction/exemption under section 54F as applicable for the year under consideration for the investment made in more than 1 residential units - HELD THAT:- As specified u/s 54F of the Act, the assessee can claim exemption for the investment made in a residential house. The question arises whether ‘a residential house’ reads as one residential house. To resolve the controversy, we note that different courts have taken different views. Some of them have interpreted the investment in ‘a residential house’ as limited to one house only whereas some of the courts have taken a view the word ‘a residential house’ uses under section 54F of the Act does not refer to one residential unit. As decided in favour of assessee in SMT. KG. RUKMINIAMMA [2010 (8) TMI 482 - KARNATAKA HIGH COURT] - there was an amendment under the provisions of section 54F of the Act wherein the word ‘a residential house’ was replaced with ‘one residential house’. Such amendment was brought by the Finance Act 2014 which is effective from 1 April 2015 corresponding to assessment year 2015-16. Whether a residential house should be read as one residential house prior to such amendment has been put to rest by changing the language in the provisions of the Act but the same is effective from the assessment year 2015-16. Thus in such a situation we can safely conclude that the assessee prior to such amendment was eligible for exemption under section 54F even he makes the investment in more than one residential properties. There is no ambiguity that the case before us pertains to the assessment year 2014-15 prior to the amendment brought under the provisions of section 54F. Accordingly, we direct the AO to allow the assessee the benefit of exemption under section 54F for the investment made in both the properties. Hence the ground of appeal of the assessee is allowed.
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