TMI Blog2018 (1) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... ully following the decision of Karnataka High Court, we do not find any merit for decline of assessee’s claim of deduction u/s.54 for investment in two flats out of sale proceeds of long term capital gains within the stipulated period provided in the Act. - Decided in favour of assessee - ITA No.298/Mum/2016 - - - Dated:- 19-1-2018 - SHRI R.C.SHARMA, AM AND SHRI PAWAN SINGH, JM For The Assessee : Shri Virendra Singh Khurana For The Revenue : Shri V. Vidhyadhar ORDER PER R.C.SHARMA (A.M): This is an appeal filed by the assessee against the order of CIT(A)- 1, Thane dated 16/10/2015 for A.Y.2012-13 in the matter of order passed u/s.143(3) of the IT Act. 2. The only grievance of assessee relates to declin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to tax at Nil value. However, AO declined assessee s claim of exemption u/s.54F on the plea that two residential flats were adjacent to each other and in view of the proviso to Section 54F which interalia stipulate that nothing contained in this sub-section shall apply where assessee purchases any residential house other than the new asset within a period of one year after the date of transfer of the original asset. AO has however, disallowed even claim in respect of one house. 5. By the impugned order, CIT(A) confirmed the action of the AO after observing as under:- (1) Exemption u/s. 54F was available in respect of one residential property and not multiple residential units as claimed by the appellant . (2) As per clause (a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... di of the said decisions is that the purpose of the purchase of the residential premises must be for the use of the family even if the flats are not necessarily combined as one flat. This logic and reasoning would extend to independent residential flats as well. 9. Reliance was placed on the decision of Karnataka High Court in the case of CIT vs. Late Khoobchand M. Makhija, decided on 18th December 2013. 10. On the other hand, learned DR relied on the order of the lower authorities. 11. We have considered rival contentions and carefully gone through the orders of the authorities below. We had also deliberated on the judicial pronouncements referred by lower authorities in their respective orders as well as cited by learned AR and D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and lands and therefore, the singular a residential house also permits use of plural by virtue of Section 13(2) of the General 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 cannot be read as multiples and so as to avoid paying tax under Section 45 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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