9911796707
TMI Blog2016 (5) TMI 1332X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds:- "2.1 The learned CIT(A) erred in deleting the disallowance of claim u/s 54F by holding the assessee is eligible for the said claim even if the investment is made in more than one residential unit as the same is situating in the same door number relying on the decision of Jurisdictional High Court in the case of CIT Vs. V.R.Karpagam (2014) 50 Taxmann.com 55 (Mad.). 2.2 The learned CIT(A) ought to have seen the fact the assessee has invested in flats situating in different blocks which are separate from each other and the CIT(A) ought to have invoked the provisions of section 54F(2) of the Income Tax Act. 2.3 The learned CIT(A) failed to note the fact that even though the residential units are situating in the same door number ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ousing Property (builder) as other party agreed to 70:30 share subject to overall constructed area not exceeding 50600 sq.ft. In the event of permission granted for construction beyond 50600 sq.ft. the ratio will be revised to 55:45 on per supplementary agreement dated 03.05.2011. The assessee in the Return of income claimed Long term capital gains arising on relinquishment of 31.056% share in the property as Nil after availing exemption u/s.54 of the act. The long term capital gains computed as Rs. 2,02,21,146/- after reducing indexed cost of land & building & demolition charges and was revised to Rs. 1,94,85,385/- on the basis of decision of Bombay High Court in the case of CIT vs. Manjula J. Shal in I.T. Appeal No.3378 of 2010. The Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the definition of residential house, which was subsequently amended from 1st April 2015 by Finance Act, 2014 were the words "one residential house" cannot be equated with "a residential house" for earlier assessments and plurality of residential units can qualify for earlier assessment years. The law applicable to assessee are pre-amended provisions. The ld. Commissioner of Income Tax (Appeals) gave macro view on the interpretation of provisions and legal opinion with dictionary meaning of "one residential house" has allowed the appeal of the assessee with realistic findings at page No. 18 and 19 of his order as under:- "Considering the facts of the instant case which are similar to the case decided as referred above, I come to the concl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e judgement of the Honorable Madras High Court in the case laws of Smt. V.R. Karpagam v. ITO No. 301 of 2004 against the order dt.7.3.2013 made in ITA No.1082/Mad/2010 of the file of ITAT Chennai Bench,: CIT Vs Smt. V.R. Karpagam (2014) 50 taxmann.com 55 HC MADRAS brief gist " Section 54F of the Income-tax. Act, 1961 - Capital gains ,- Exemption of in case of ' investment in residential house (Meaning of residential house) - Assessment year 2007-0.8 - As per a development agreement, assessee-land owner parted from land and she .was to receive 43.75 per cent of built up area, which was translated. to 5 flats - Whether a residential house would include multiple flats/residential units also, and, therefore, assessee. was eligible for exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed his arguments with jurisdictional High Court decisions and prayed for dismissing the appeal. 7. We heard the rival submissions, perused the material on record and judicial decisions. The ld. Departmental Representative main contention that assessee is not eligible for exemption u/s. 54F of the Act due to investment in more than one residential property in the same block. The fact that the assessee has entered into development agreement alongwith his sons with builder on certain terms and conditions as per agreements and considering the ratio of sharing of areas between both the parties the assessee was allotted flate alongwith his sons in the same block of building on different floors. The assessee complied the conditions for claim of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided that nothing contained in this sub-section shall apply where- (a) the assessee,- (i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; 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 head "Income from house property".] Subsequently, there was a amendment by Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
