TMI Blog2018 (1) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of residential house at Mumbai and Pune was well in order. We thus in context of the issue under consideration set aside the order of the CIT and uphold the claim of deduction as was raised by the assessee - Decided in favour of assessee. - ITA No. 3270/Mum/2016 - - - Dated:- 17-1-2018 - SHRI RAJENDRA, AM AND SHRI RAVISH SOOD, JM For The Appellant : Shri Madhur Agrawal, A.R For The Respondent : Shri Purushottam Kumar, D.R ORDER PER RAVISH SOOD, JUDICIAL MEMBER: The present appeal is directed against the order passed by the CIT(A)-7, Mumbai dated 25.02.2016, which in itself arises from the order passed by the A.O under Sec. 143(3) of the Income tax Act, 1961 (for short Act ), dated 23.02.2015. The assessee had assailed the order passed by the CIT(A) on the following grounds : This appeal is against the order dated 25.02.2016 of the Commissioner of Income Tax (Appeals) - 7, Mumbai, (hereinafter referred to as the CIT(A) ) in appeal against Order dated 23.02.2015 u/s 143(3) of the Income-tax Act, 1961, passed by the Assistant Commissioner of income-tax - 16(3), Mumbai (hereinafter referred to as 'the A.O. ) and relates to the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amount deposited in Capital gain account scheme with SBI u/s 54 before 30.09.2012. ₹ 1520682 ₹ 1520682 Total Investment ₹ 26381538 The computation of income under the head LTCG and the claim of deduction under Sec. 54 was revised by the assessee during the course of the assessment proceedings by way of a statement dated 07.01.2015. The assessee came up with another revised working of capital gain and claim of deduction under Sec. 54 by way of another statement dated 10.02.2015, as per which the income under the head LTCG was shown at an amount of ₹ 10,138/-. 5. The A.O observed that the claim of deduction raised by the assessee under Sec. 54 was comprised of (i). investment in purchase of a residential property at Pune; (ii). investment in a flat, viz. 4-5, Apsara CHS Ltd, Nargis Dutt Road, Pali Hill, Mumbai; and (iii). deposit of amount in the Capital gain account scheme with SBI. The A.O being of the view that as the claim of deduction under Sec. 54 was allowed for purchase of one residential house only, therefore, called upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbai. The A.O deliberating on the claim of deduction raised by the assessee under Sec. 54, observed that as the assessee had purchased the residential flat at Mumbai, vide a purchase agreement dated 24.02.2012, therefore, the purchase of the new asset was completed before the date of filing of the return of income under Sec. 139 of the Act. The A.O on the basis of his aforesaid observations concluded that now when the purchase of the new asset already stood completed within the time limit stipulated under Sec.54(1), therefore, there remained no occasion for claim of any further deduction in respect of the amount of capital gain which was deposited by the assessee in the Capital Gain Account Scheme with SBI. The A.O in the backdrop of his aforesaid observations also declined to allow deduction under Sec.54 in respect of the amount of ₹ 15,25,000/- that was deposited by the assessee in the Capital Gain Account Scheme with SBI. The A.O on the basis of his aforesaid observations recomputed the income of the assessee chargeable to tax under the head LTCG at ₹ 1,32,58,394/- 7. Aggrieved, the assessee carried the matter in appeal before the CIT(A). The CIT(A) after delibe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities and the material available on record. We find that Sec. 54 of the Act which provides for a deduction to an assessee in respect of the capital gain that arises from transfer of a long term capital asset being a residential house, as was available on the statute during the year under consideration, viz. A.Y 2012-13, clearly provided that the deduction would be available to an assessee either where he had within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed a residential house . We find that the legislature in all its wisdom had came up with a prospective amendment to Sec. 54 of the Act, vide the Finance (No. 2) Act, 2014 with effect from 01.04.2015, as per which the term a residential house was substituted by one residential house in India . We are of the considered view that the pre-amended Sec. 54 as would be applicable to the case of the present assessee, by using the term a residential house though characterized the nature of investment and thus required that the investment was to be made towards purchase or construction of a residential house, but h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to understand the meaning of the word a in the context in which it is used in the said Section. 10. The words a or an and the are called Articles. They come before nouns. There are two Articles - a (or an) and the. a or an is called the Indefinite Article, because it usually leaves indefinite the person or thing spoken of. The is called the Definite Article, because it normally points out some particular person or thing. The indefinite article is used before singular countable nouns. The definite article i's used before singular countable nouns, plural countable nouns and uncountable nouns. The indefinite Article 1's used in two contexts, firstly, in its original numerical sense of one. Secondly, in the vague sense of a certain. It is also used in the sense of any, to single cut an individual as the representative of a class. It is also used to make a common noun of a proper noun. 11. In the Strouds Judicial Dictionary of Words and Phrcses dealing with this letter a , it is said a is sometimes read as the . a may sometimes be read as some . But, more frequently a is the equivalent of any . However, it is difficult to read a as all . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ands appurtenant thereto, the income derived from the sale of such a residential house is chargeable under the head Income from house property. If the assessee has within a period of one year before or two years after the dale on which the transfer took place purchased, or has within a period of three years after that date constructed a residential house, then, instead of the capital gain being charged to income-tax as income of the previous years in which the transfer took place, it shall be dealt with in accordance with the aforesaid provisions. In this part of the section also, the words a residential house is again used. The said residential house necessarily has to include buildings or lands appurtenant thereto. It cannot be construed as one residential house. In this context, it is useful to refer- to Section 13 of the. General Clauses Act, 1897, which reads as under: 13. Gender and number. - In all Central Acts and Regulations, unless there is anything repugnant in the subject or context - (1) words importing the masculine gender shall be taken to include females; and (2) words in the singular shallinclude the plural, and vide versa 10. The cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ized capital gain, which he has offered for tax. Therefore, as held in the aforesaid Rukminiamma s case, the context in which the expression a residential house is used in Section 54 makes it clear that it was not the intention of the legislature to convey the meaning that it refers to a single residential house. The letter a in the context, which is used, should not be construed as meaning singular, but being a 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 Section 13(2) of the Genera] Clauses Act. 18. Therefore, we are of the view, in the facts and circumstances of this case, the acquisition of two residential houses by the assessee out of the capital gains falls within the phrase residential house and accordingly, the assessee is entitled to the benefit conferred under Section 54(1) of the Act. However, we make it clear that while interpreting this word, the Court or the Tribunal or the authorities have to keep in mind the facts of the particular case. When we have held a cannot be read as singular, it also cann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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