TMI Blog2018 (11) TMI 1168X X X X Extracts X X X X X X X X Extracts X X X X ..... the decisions of the Hon’ble Karnataka High Court in the case of CIT Vs. Smt. K. G. Rukminiamma (2010 (8) TMI 482 - KARNATAKA HIGH COURT) and CIT Vs. V. R. Karpagam (2014 (8) TMI 899 - MADRAS HIGH COURT) and other judicial pronouncements referred to above, I am of the considered opinion that the assessee in the case on hand is eligible to be allowed for exemption u/s 54F of the Act in respect of multiple facts, i.e., the 3 flats in the same apartment building received by him upon entering into the JDA on 14.12.2005 with M/s. Chamundi Builders. The AO is accordingly directed. Consequently, ground No. 4 of the assessee’s appeal is allowed. - ITA No.2938/Bang/2018 - - - Dated:- 16-11-2018 - SHRI JASON P BOAZ, ACCOUNTANT MEMBER For T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being in the nature of transfer of land, capital gains accrued in the assessee s hands in the period relevant to Assessment Year 2006-07 and initiated proceedings u/s 147 of the Income Tax Act, 1961 (in short the Act ), recording that he had reason to believe that the assessee s income is exigible to tax, by virtue of the above transaction, had escaped income. The AO then issued notice u/s 148 of the Act on 27.03.2013; after obtaining the previous approval of the authorities concerned. The AO observing that in view of the assessee s non-compliance to statutory notices issued, he was constrained to complete the assessment ex-parte on the basis of material on record passed an order u/s 144 r.w.s. 147 of the Act on 30.03.2014, wherein the Lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned OT[A] is not justified in upholding long term capital gains at ₹ 20,37,333/- for the year under appeal without appreciating that there was no transfer of any interest in land as per the joint development agreement datedl4/12/2005 under the facts and in the circumstances of the appellant's case. 4. Without prejudice to the above, the learned CIT[A] ought to have held that the appellant was entitled to exemption u/s. 54F of the Act, in respect of all 3 residential apartments instead of allowing the same in respect of only one residential apartment under the facts and in the circumstances of the appellant's case. 5. Without prejudice to the right to seek waiver with the Hon'ble CCIT/DG, Me appellant d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the case of Anjum H. Ghaswala in 252 ITR 1(SC) and I therefore uphold the AO s action in charging the said interest. The AO is, however, directed to re-compute the interest chargeable u/s 234A and 234B of the Act, if any, while giving effect to this order. 7. Ground No. 4 Claim of Exemption u/s 54F of the Act . 7.1 The learned AR for the assessee, in support of the ground raised on this issue, submitted that the assessee entered into a JDA with M/s. Chamundi Builders on 14.12.2005 for development of land at Arekere Village, Begur Hobli, Bangalore. As per the terms thereof, the assessee was entitled to 3 residential flats; in lieu of transfer of 60% undivided share of the land to the Developer; for which the assessee was ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g. Reliance was also placed on the decisions of the Co-ordinate Bench of the Tribunal in the cases of T A V Gupta Vs. ITO in ITA No. 209/Bang/2018 dated 24.04.2018; Smt. Nethravathi Vs. ITO in ITA No. 2630/Bang/2017 dated 25.04.2018 and Ms. Saritha Anand Shetty in ITA No. 1886/Bang/2018 dated 10.08.2018, copies of which have been placed on record. 7.2 Per contra, the learned DR for Revenue submitted that both the AO and the CIT(A) have thoroughly examined the provisions of section 54F of the Act and the intention of the Legislature. According to the learned DR, the amendment in section 54F of the Act by Finance Act, 2014 w.e.f. 01.04.2015, where one residential house has been substituted in place of a residential house makes it clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ITAT, Bangalore Bench, followed the decision of the Hon ble Karnataka High Court in the case of CIT Vs. Smt. K. G. Rukminiamma (supra). 7.3.3 On similar facts, the same view was also taken by the Hon ble Madras High Court in the case of CIT Vs. V. R. Karpagam (ITA No. 301 of 2014 dated 18.08.2014). In this judicial pronouncement, the Hon ble Madras High Court also held that the Amendment made to section 54F of the Act with regard to the word a by Finance (No.2) Act, 2014 was operative w.e.f. only 01.04.2015, whereby exemption for more than one flat (residential house), is to be withdrawn. However, prior to the aforesaid Amendment (supra), a residential house would include multiple flats/residential units in the same multi-storey apa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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