2023 (5) TMI 1006 - AT - Income Tax

Benefit of exemption u/s. 54F - Purchase of second residential house - assessee already owns one residential house in USA - Period of limitation for investment in the property within a period of three as mandated in section 54F - HELD THAT:- From the plain reading of the provisos (a) & (b) to section 54F it is clear that if the assessee owns more than one residential house other than the new asset on the date of transfer of original asset, the benefit of deduction u/s. 54F cannot be availed by the assessee. The Act is also silent on the fact whether the property should be situated in India or outside India.

The submission of the DR also holds merit on the ground that the assessee is a co-owner of the property situated in USA which was evidenced by the property record details submitted by the Ld. DR.

There is also merit in the argument of DR that the assessee habitually resides in the property situated in USA and has disclosed the address of that property in the assessee’s Passport. Contention of the Ld. AR that the property at USA is a Farm House cannot be accepted. Since the assessee owned one more residential house at the time of transfer of original asset, the assessee is not entitled to claim the benefit of deduction u/s. 54F of the Act. Hence, the Ground No.1 raised by the Revenue is allowed.