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Smt. Hemalatha Chandran, C/o Shri S. Sridhar, Advocate Versus The Income Tax Officer,

Computation of capital gain - exemption claimed by the assessee under Section 54F - capital gain was invested in multiple residential units - Held that:- Section 54F of the Act clearly says that the capital gain arising from the transfer of any long term capital, the asset not being residential house, is eligible for exemption, if the assessee, within a period of one year before or two years after the date of transfer, purchased or has within a period of three years after the date of transfer, c .....

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r under consideration is 2011-12. Therefore, in view of the judgment of Madras High Court in V.R. Karpagam (2014 (8) TMI 899 - MADRAS HIGH COURT ), the assessee is eligible for exemption even though the capital gain was invested in multiple residential units.

New house purchased in the joint name of the assessee and her daughter - Held that:- This Tribunal is of the considered opinion that when the assessee purchased a house in the joint name along with her daughter, the assessee is e .....

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TMI 401 - DELHI HIGH COURT ). The Delhi High Court held that the assessee is eligible for exemption under Section 54F of the Act under such circumstances. Therefore, the Assessing Officer is not justified in disallowing the claim of the assessee.

Assessee is having one house inherited from her father by way of will - Held that:- Proviso to Section 54F says that when the assessee owns more than one residential house other than the new asset on the date of turnover of original asset, th .....

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inherited from her father. Therefore, this Tribunal is of the considered opinion that proviso to Section 54F of the Act may not stand in the way of allowing exemption under Section 54F of the Act. In the case before us, both the properties were registered on 28.10.2011. Section 54F clearly says that the new asset has to be purchased within a period of two years after the date of transfer. In this case, the property was purchased on the very same day. The assessee had no other asset other than th .....

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o:p> Per N. R. S. Ganesan, Judicial Member This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-15, Chennai, dated 19.02.2015 and pertains to assessment year 2011-12. 2. The only issue arises for consideration is with regard to computation of capital gain and exemption claimed by the assessee under Section 54F of the Income-tax Act, 1961 (in short 'the Act'). 3. Shri S. Sridhar, the Ld.counsel for the .....

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oduced copies of development agreements entered between the assessee and the flat promoters, M/s L&T South City Projects. According to the Ld. counsel, the residential house was purchased in the joint name of assessee and her married daughter Dr.(Mrs.) Jeshija Roy Festus. The Ld.counsel further submitted that the assessee has taken the physical possession of property in 2012 and the same was let out. According to the Ld. counsel, both the properties were purchased on 28.10.2011 by means of r .....

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4.2015. Therefore, even though the assessee invested in five independent flats, the assessee is eligible for exemption under Section 54F of the Act. The assessment year under consideration is 2011-12, therefore, the amendment made by the Parliament in Section 54F of the Act by Finance (No.2) Act, 2014 with effect from 01.04.2015 is not applicable to the facts of the case. The Ld.counsel submitted that proviso to Section 54F of the Act clearly says that if an assessee owns more than one residenti .....

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on under Section 54F of the Act. 4. On the contrary, Sh. P. Radhakrishnan, the Ld. Departmental Representative, submitted that the assessee sold two commercial properties by means of two independent sale deeds dated 27.05.2010 and 28.10.2010. According to the Ld. D.R., the assessee has also purchased two independent flats not in the name of the assessee but in the joint name of the assessee and her daughter. Section 54F of the Act, according to the Ld. D.R., provides for exemption of .....

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is more than the one residential house, is not eligible for exemption under Section 54F of the Act. Apart from that, investment is not made in the name of the assessee. It was made in the joint name of the assessee and her daughter. Therefore, according to the Ld. D.R., the assessee is not eligible for exemption under Section 54F of the Act. 5. We have considered the rival submissions on either side and perused the relevant material available on record. We have carefully gone through .....

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ed, or has within a period of three years after that date constructed, one residential house in india(hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,- (a) if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45: (b) if the cost of the new .....

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sset ; or (ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset ; or (iii) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; and (b) the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the .....

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ransfer of the original asset, or constructs, within the period of three years after such date, any residential house, the income from which is chargeable under the head "Income from house property", other than the new asset, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such new asset as provided in clause (a), or, as the case may be, clause (b), of sub-section (1), shall be deemed to be income charg .....

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the case may be, clause (b), of sub-section (1), shall be deemed to be income chargeable under the head "Capital gains" relating to long-term capital assets of the previous year in which such new asset is transferred. (4) The amount of the net consideration which is not appropriated by the assessee towards' the purchase of the new asset made within one year before the date on which the transfer of original asset took place, or which is not utilised by him for the purcha .....

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n in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit ; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset: Provided that if the amount deposited under this sub-section is not utilised, wholly or partly for the purchase or construction of the new asset .....

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asset within the period specified in sub-section (1) been the cost of the new asset, shall be charged under section 45 as income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw the unutilised amount in accordance with the scheme aforesaid. Admittedly, the assessee has sold two commercial properties by means of two sale deeds dated 27.05.2010 and 20.10.2 .....

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ty inherited from her father. Apart from that, the Assessing Officer found that the new residential house purchased by the assessee is in the joint name of the assessee and her daughter. 6. Section 54F of the Act clearly says that the capital gain arising from the transfer of any long term capital, the asset not being residential house, is eligible for exemption, if the assessee, within a period of one year before or two years after the date of transfer, purchased or has within a peri .....

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ts. The year under consideration is 2011-12. Therefore, in view of the judgment of Madras High Court in V.R. Karpagam (supra), the assessee is eligible for exemption even though the capital gain was invested in multiple residential units. 7. The next objection of the Assessing Officer is that the assessee has purchased the new house in the joint name of the assessee and her daughter. The Assessing Officer distinguished the judgment of Delhi High Court in CIT v. Kamal Wahal (2013) 351 .....

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e Delhi High Court and his wife are living together may not be relevant consideration at all. What is to be considered is when the assessee purchased a house along with her legal heir for investment of capital gain, whether such investment is eligible for exemption under Section 54F of the Act? This was considered by the Delhi High Court in Kamal Wahal (supra). The Delhi High Court held that the assessee is eligible for exemption under Section 54F of the Act under such circumstances. Therefore, .....

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