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2021 (6) TMI 663 - AT - Income TaxExemption u/s 54 - reinvestment of long term capital gain in acquisition of both the flats as one residential unit - HELD THAT:- Even though different flat numbers are given, both the flats in Flat No. 802A and Flat No. 802B are adjacent to each other and is a one residential property which has common passage/staircase, common kitchen and common entrance and common amenities as per the project of the builder.The assessee is entitled to claim deduction under section 54 of the Act for the reinvestment of long term capital gain in acquisition of both the flats as one residential unit. Against the alternate plea of the assessee that even if the Department treat the residential unit as two different residential units and the assessee is entitled to claim exemption under section 54 of the Act in view of the decision in the case of CIT v. V.R. Karpagam (supra), we find that even though in V.R. Karpagam's [2014 (8) TMI 899 - MADRAS HIGH COURT], the claim was raised under Section 54F of the Act the said case law would certainly apply to a case under Section 54 of the Act also because a bare reading of Sections 54 and 54F of the Act would reveal that the two provisions are in pari materia with regard to those aspects of provisions of law which we are concerned with in the instant case. While section 54 of the Act deals with capital gains arising out of transfer of buildings or lands appurtenant thereto and being residential house, section 54F of the Act deals with capital gain arising out of transfer of any long term capital asset not being a residential house. Otherwise, in all other aspects of the matter, the two provisions namely sections 54 and 54F are in pari materia. Therefore, the interpretation of 'a residential house' occurring in section 54F cannot be any different for the same phrase 'a residential house' occurring under section 54 of Act. In this regard what applies to section 54F would apply in equal and full force to section 54 also. Therefore, the principles in V.R. Karpagam's case would certainly apply to the facts of the instant case. Thus, we are of the considered opinion that the ld. CIT(A) has rightly directed the Assessing Officer to allow deduction under section 54 of the Act for reinvestment of long term capital gain in acquisition of both the flats. Accordingly, the ground raised by the Revenue stands dismissed.
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