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2020 (9) TMI 1014 - AT - Income TaxExemption u/s 54F - Denial of exemption as appellant received multiple number of flats - transfer of 60% of land for builders against cost of construction of flats for 40% share - assessee and co-owners of the property had entered into a joint development agreement - Assessee submitted capital gains is not assessable in the year of entering into joint development agreement but only when the flats are received by the assessee as per the joint development agreement - HELD THAT:- All the flats were situated in a residential building and the four residential flats constitute “a residential house”. Accordingly, view confirmed by the Hon’ble High Court in SMT. KG. RUKMINIAMMA [2010 (8) TMI 482 - KARNATAKA HIGH COURT]. As decided in SHRI. B.J. BADRINATH [2018 (11) TMI 1168 - ITAT BANGALORE] ratio of the judgement of the Hon’ble jurisdictional High Court in the case of CIT Vs. K.G. Rukminiyamma (supra) applies to also 54F of the Act since both section i.e. 54 & 54F of the Act are pari materia. Moreover, in the case of other co-owners, it has been submitted by the Ld. A.R. that claim of deduction u/s 54F of the Act was allowed by the A.O. This assertion made by the Ld. A.R. was not controverted by the Ld. D.R. Amendment to section 54 & 54F, restricting the claim of deduction to one residential unit was introduced by Finance (No.2) Act, 2014 w.e.f. 1.4.2015 (i.e. from AY 2015-16). Since we are concerned with assessment year 2009-10, the amendment brought out by Finance (No.2) Act, 2014 does not have application for the instant case.
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