TMI Blog2019 (3) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... r that deduction u/s 54 would be available to the assessee on account of investment in multiple flats it the same were being used as a single unit. In the present case, we find that this condition has been fulfilled by the assessee. Therefore, in our considered opinion, the assessee was eligible to claim deduction on account of investment made in multiple adjoining flats. computation of capital gain u/s 48 - Deduction of property tax and other payment made to BMC - HELD THAT:- So far as the deduction of BMC Property Tax for ₹ 12 Lacs is concerned, the same could not be said to have been incurred wholly and exclusively in connection with the transfer of the property in terms of Section 48 and the deduction of the same has rightly be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 2,24,00,000/- total consolidated cost of four adjoining flats on the same floor in the same building which one house. On the facts and under the circumstances of the case and in law, the Learned CIT(A) erred in confirming the action of AO in disallowing expenses of ₹ 21,00,000/- and ₹ 12,00,000/- being transfer expenses paid to society incurred by the appellant being expenditure incurred wholly and exclusively in connection with sale / transfer u/s 48(i). 2.1 The assessment for impugned AY was framed by Ld. Ld. Assistant Commissioner of Income Tax-17(2), Mumbai [AO] u/s. 143(3) on 30/03/2015 wherein the income of the assessee was determined at ₹ 538.78 Lacs as against returned income of ₹ 366.18 Lacs f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent made in Section 54(1) was applicable only from AY 2015-16 and therefore, the full deduction was allowable. The attention was drawn to the fact that all the flats were purchased vide single application and allotment letter and single combined payment was made to the builders and therefore. The intention was to use all the flats as single residential house / unit. Reliance was placed on certain judicial pronouncements to support the same. However, not convinced, Ld. AO restricted the deduction u/s 54 to ₹ 56 Lacs, being investment made in one flat. Finally, the LTCG were re-worked at ₹ 439.08 Lacs and the differential amount i.e. ₹ 172.67 Lacs was added to the income of the assessee. The stand of Ld. AO, upon confir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se documentary evidences. 4.2 So far as the statutory provisions are concerned, we find that in terms of Section 54 as applicable to impugned AY, deduction was allowable to the assessee against purchase / construction of 'a' residential house. The amendment to Section 54 substituting the word a with one has been brought in the statute only with effect from 01/04/2015 and therefore, the amendment was not applicable for the impugned AY. 4.3 In various decisions given by Hon'ble High Court and Hon'ble Tribunal, interpretation of the word a preceding the expression residential house has been given wherein it has been observed that a residential house should not be understood to indicate a singular number. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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