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TMI Blog2013 (1) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... wer authorities on the ground that the assessee cannot claim exemption both u/s 54 and 54F for investment in the same house. 3. Briefly the facts are, the assessee is an individual. For the impugned assessment year the assessee filed his return of income on 29-9-2008 declaring income of Rs. 53,60,050/- and agricultural income of Rs. 3,17,628. Initially the return was processed u/s 143(1) of the Act. However, subsequently assessee's return was selected for scrutiny by issuing a notice u/s 143(2) of the Act. During the assessment proceeding the AO noticed that the assessee during the relevant financial year has transferred land to a developer under a development agreement and has earned long term capital gain of Rs. 49,19,513. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has to invest in two separate houses. The assessee also made an alternative submission that the entire long term gain of Rs. 93,24,815 should have been allowed as exemption u/s 54F of the Act as the property on transfer of which exemption was claimed u/s 54 was in fact only a land having a watchman's room admeasuring 200 sq. ft. The constructed room occupies an insignificant portion of the plot. It was further submitted that the property supposed to be transferred as prescribed by sec. 54 is a residential house, the income of which is chargeable under the head income from house property. However, in assessee's case it cannot be considered to be a residential house as the room constructed over the plot of land was small room ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'income from house property', it is clear that the appellant had himself shown the said property as such a property in the return of income filed by him under due verification. Beside, the claim so made was not revised on any subsequent occasion by way of a revised return. Therefore, in the light of the decision of the Hon'ble Supreme Court in the case of Goetze (India) Ltd. (284 ITR 323), the alternative ground so raised cannot be accepted at this stage, as there is no provision in the Act allowing an amendment in the return without a revised return. In the light of the above discussion, the grounds raised in this appeal are decided against the appellant. 6. The learned AR reiterating the stand taken before the CIT(A) submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord. We have also applied our mind to the various decisions cited before us. Facts which are undisputed are, the assessee during the relevant financial year had earned log term capital gain out of transfer of two distinct and separate assets. One is a plot of land and the other is a house property. The total long term capital gain on transfer of these two assets is Rs. 93,24,815. The assessee had purchased a new residential house within the prescribed time for a consideration of Rs. 1,43,26,665/-. It is the claim of the assessee that the entire long term capital gain arising from the sale of the two assets were invested in purchase of the new residential house hence the assessee is entitled to avail exemption u/s 54 and 54F of the Act where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lower authorities have rejected assessee's claim of exemption u/s 54 is that the assessee cannot claim exemption under both the sections towards investment in a single house. According to the lower authorities for claiming exemption both u/s 54 and 54F the assessee has to invest in two houses. In our view, such an interpretation of the provisions is totally misconceived and misplaced. The restriction imposed under the proviso to section 54F(1) clearly debars exemption if the assessee purchases or constructs more than one residential house. 9. At the cost of repetition, we would like to reiterate that sec. 54 and 54F apply under different situations. While sec. 54 applies to long term capital gain arising out of transfer of long term c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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