TMI Blog2018 (12) TMI 1312X X X X Extracts X X X X X X X X Extracts X X X X ..... e existence of civic amenities etc. Besides the above, the undisputed factual position is that there was a constructed shed of 100 Sq.ft. with ACC sheet roofing with walls of brick and mortar and cement flooring and the Assessee's employee has been staying to look after the property. Since there was a person already living in the structure, it can be said that it was in a habitable condition even though basic amenities such as Electricity and water supply was not there. The Khate issued by the BBMP mentions the description of the property as residential property and determined annual value at ₹ 780/-. CIT(A) was justified in directing the AO to allow deduction u/s.54F of the Act to the Assessee. The order of CIT(A0 does not call fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , situated at 2nd Cross Road, Lorry stand, Godown Street, Yeshwantpur, Bangalore, by utilizing the long term capital gain and therefore it is entitled to a deduction of the whole of the long term capital gain. 4. The AO perused copy of the registered sale deed under which the assessee claimed to have purchased a residential house property. He noticed what assessee was purchased was only a vacant land. He also noticed that there was a constructed shed measuring 100 sq.ft. of ACC sheet roofing and there was no electricity and water. The AO, therefore, was of the view that the condition required to be satisfied u/s 54F of the Act, viz., viz., purchase of residential house was not complied with by the assesse. According to the AO, a small 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e above reasons, AO denied the benefit of deduction u/s 54F of the Act to the assessee 5. On appeal by the Assessee, the first appellate authority viz., CIT(A), allowed claim of the assessee for deduction u/s.54F of the Act. The CIT(A) firstly held that the decision in the case of MB Ramesh(supra), rendered by the Hon ble Karnataka High Court was dismissal of appeal on the ground that a finding of fact cannot be challenged in appeal u/s.260A of the Act. The CIT(A) found that Khate issued by the BBMP mentions the description of the property as residential property and determined annual value at ₹ 780/-. The CIT(A) also found that the description of the property as mentioned in the sale deed was site with 100 sq ft AC sheet shed and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy living in the structure, it can be said that it was in a habitable condition even though basic amenities such as Electricity and water supply was not there. He was of the view that sections 54 and 54F of the Act are beneficial provisions for promoting construction of residential house and requires to be construed liberally in achieving that purpose. The CIT(A) relied on the decision of the Hon'ble Supreme Court held in the case of Bajaj Tempo Ltd. Vs CIT 196 ITR 188(SC) wherein it was held that a provision in taxing statue granting incentive for promoting growth and development should be construed liberally, the restriction on it too has to be construed so as to advance objective of the provision and not to frustrate it. For all t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sfer took place purchased, or has within a period of three years after that date constructed, a residential house (hereinafter in this section referred to as the new asset), the cpital gain shall be dealt with in accordance with the following provisions of this section that is to say,- 9. The question that arising for consideration in this appeal is as to whether the Assessee can be said to have purchased a residential house . The requirement of law is that the property should be a residential house. The expression residential house has not been defined in the Act. The popular meaning of the word is a place or building used for habitation of people. It is used in contradistinction to a place which is used for the purpose of business, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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