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TMI Blog2020 (2) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the ld.CIT(A) has erred in not deleting interest charged under section 234B of the Act amounting to Rs. 8,25,140/-. As far as charging of interest under section 234B is concerned, the same is consequential in nature. In case while giving effect to order of the Tribunal it comes out that total assessed income has been reduced and interest on certain amount under section 234B is not chargeable, then the ld.AO shall carry out that exercise after providing opportunity of hearing to the assessee. In other words, it is just consequential, hence remitted to the AO for read-judication after order of the ITAT on this appeal. 4. In ground no.2 the assessee has pleaded that the ld.CIT(A) has erred in confirming action taken by the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd its reply. Under question no.9, the assessee was asked to give details of movable and immovable properties held by her, and her family members, and also source thereof. In response to this question, assessee disclosed that she owned two flats; one at 281, 28th Floor, Kalpataru Heights, Dr.A. Nair Road, Mumbai, another at Soitaire, Mumbai. She has also disclosed other details of the property owned by her. On the strength of this reply, the ld.CIT-DR contended that during the course of search it revealed that her claim under section 54F is basically incorrect. She has not disclosed details of these flats or properties in the computation of income. She should have put a note under the return while claiming exemption under section 54F of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, one residential house in India (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,- (a) if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45 ; (b) if the cost of the new asset is less than the net ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rise to long term capital gain. She has purchased a new residential house in India. Only objection raised by the AO is that she was having more than one residential house other than the new asset on the date of transfer of original asset. In other words, in the opinion of the AO, her case falls within the ambit of sub-clause (a)(i) of proviso of section 54F(). The ld.counsel for the assessee at the time of hearing placed on record details in tabular form with respect to all properties owned by assessee, and such details reads as under: Sr. No Details of Property referred to in assessment order in Para 7.1 at Page 5 Paper Book Page No Individually or jointly owned property Purpose for which property was used 1 70% share in Park ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... she owns one residential house, other than a new asset on the date of transfer of capital asset. In other words, this proviso disentitle benefit of section 54F only in a case where the assessee owns more than one residential house, other than the new asset on the date of transfer of original asset. Meaning thereby, if an assessee was having two residential houses already, when she purchased new house by utilizing long term capital gain, then she will not be entitled to claim exemption under section 54 of the Act. 12. The ld.DR on the other hand contended that Flat at Indore, Bafna Tower is a residential house. The assessee has treated it as commercial asset, and if it be treated as residential house, then the assessee would be having two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore her case would fall within the ambit of clause (a)(i) of the proviso appended to section 54F. It is also pertinent to observe that object of Section 54F is go give incentive to the assessee for making investment in purchase of residential house. Such object ought not to be defeated on sum flimsy reasons. Therefore, in view of above discussion, we are of the view that the assessee is entitled for exemption under section 54F of the income Tax Act. We direct the AO to grant exemption of Rs. 50 lakhs on account of investment in new residential house out of long term capital gain. This ground of appeal is allowed. 15. In the result, appeal of the assessee is partly allowed. Order pronounced in the Court on 22nd January, 2020 at Ahmeda ..... X X X X Extracts X X X X X X X X Extracts X X X X
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