TMI Blog2019 (9) TMI 1031X X X X Extracts X X X X X X X X Extracts X X X X ..... o be eligible to claim deduction u/s.54 of the Act and it does not restrict the claim of deduction u/s.54 of the Act to one house only. We also find that the amendment which had been brought in the Act is only w.e.f. A.Y.2015-16 and cannot be made applicable to the year under consideration as has been held in the aforesaid decision supra. Assessee is entitled for deduction u/s.54 - Decided in favour of assessee. - ITA No.1846/Mum/2018 - - - Dated:- 11-9-2019 - Shri M. Balaganesh, AM And Shri Ram Lal Negi, JM For the Assessee : Shri Fenil Bhatt For the Revenue : Shri D.G. Pansari ORDER PER M. BALAGANESH (A.M) : This appeal in ITA No.1846/Mum/2018 for A.Y.2010-11 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-32, Mumbai in appeal No.CIT(A)-32/IT-60/20(2)/2015-16 dated 15/07/2016 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3)of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 09/03/2015 by the ld. Income Tax Officer 20(2)(2), Mumbai (hereinafter referred to as ld. AO). 2. At the outset we find th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he entire litigation in hand. There was absolutely no mala fide intention on the part of the assessee in this regard. But the assessee later was served with a penalty notice u/s.271(1)(c) of the Act on 08/03/2018 at which point in time, the assessee had to approach the Counsel who had advised him to prefer this appeal against the quantum order of ld. CIT(A) with a delay condonation stating all these facts. It was pleaded by the authorised representative of the assessee and further strengthened by the affidavit of the assessee that assessee was not aware of the fact that penalty provisions would follow on him pursuant to the order of the ld. CIT(A). The assessee being an individual was not conversant with the provisions of the Income Tax Act and never in the past he had been subjected to scrutiny proceedings to understand the nuances and intricacies of income tax assessment. With this background, the condonation of delay prayed by the assessee need to be looked into. We find that the ld. DR had vehemently argued that delay should not be condoned in the instant case in as much as assessee had sought advice of Chartered Accountant who had advised the assessee not to file any appeal be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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 however, it did not place any restriction as regards the number of residential houses in which the assessee could invest for claiming deduction under the said statutory provision. We are of the considered view that the amendment made available on the statute, vide the Finance(No.2) Act, 2014, with effect from 01.04.2015, pursuant whereto the term a residential house had been substituted by one residential house in India , rather supports the fact that the restriction of making the investment in only one residential house had been made available on Page |8 ITA No. 3270/Mum/2016 AY: 2012-13 Mr. Ravi Shankar Vs. ACIT-16(3) the statute only with effect from A.Y 2015-16, and as such cannot be extended to the years prior to that. We find that our aforesaid view is fortified by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Phases 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‟. 12. In the Concise Oxford Dictionary of Current English, dealing with the letter a‟ is stated that, a‟ sometimes called indefinite article, used with apparent plurals of number. 13. Section 13 of the General Clauses Act, 1897 deals with gender and number. It 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 shall include the plural, and vice versa 10. 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 legislation to convey the meaning that it refers to a single residential house. If that was the intention, they would have used the word one. As in the earlier part, the words used are buildings or lands which are plural in number and that is referred to as a residential house , the original as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 cannot be read as multiples and so as to avoid paying tax under Section 45 of the Act. Therefore, in the facts and circumstances of this case, we answer the first substantial question of law raised in favour of the assessee and against the Revenue. 11. We further find that the Hon'ble High Court of Madras in the case of CIT Vs. Smt. V. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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