TMI Blog2011 (6) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... ning that it refers to a single residential house. As in the earlier part, the words used are buildings or lands which are plural in number and that is referred to as a residential house , the original asset. An asset newly acquired after the sale of the original asset also can be buildings or lands appurtenant thereto, which also should be a residential house . Therefore, the letter a in the context it is used should not be construed as meaning singular . But, being an indefinite article, the said expression should be read in consonance with the other words buildings and lands and, therefore, the singular a residential house also permits use of plural by virtue of sec. 13(2) of the General Clauses Act COMMISSIONER OF INCOME-TAX ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration, the assessee entered into a collaboration agreement with a developer, M/s Thapar Homes Ltd. on 8.5.2006 to develop, construct and build a fresh building on the said plot of land. The Assessing Officer, was of the view that the provisions of section 54 were not applicable to the facts of the case. It was also his views that the entire new property would not be eligible for deduction under section 54F. It is mentioned in the order as follows:- In view of the above discussion, the assessee is found to be not eligible for exemption under section 54. Even, under section 54F, it would be eligible for deduction with respect to cost of construction incurred on the unit retained by the assessee plus any 1 unit of the remaining 2 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 54 for the basement, ground floor, first floor and the second floor. 5. Against this order the Revenue is in appeal before us. 6. We have heard the rival contentions in light of the material produced and precedent relied upon. We find that ld. counsel of the assessee submitted that the issue is squarely covered in favour of the assessee by the decision of the Hon ble Karnataka High Court in the case of C.I.T. Anr. v. Smt. K.G. Rukminiamma in ITA No. 783 of 2008 vide order dated 27.8.2010 wherein it was held as under:- The context in which the expression a residential house is used in s. 54 makes it clear that it was not the intention of the legislation to convey the meaning that it refers to a single residential house. If ..... X X X X Extracts X X X X X X X X Extracts X X X X
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