9911796707
TMI Blog2020 (8) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... Act") dated 20/12/2016 relevant to Assessment Year (A.Y) 2014-15. 2. The assessee has raised the following grounds of appeal: 1. In law and in the facts and circumstances of the appellant's case, the impugned Appellate order passed by the Ld. CIT (A), is void and bad in law. 2. In law and in the facts and circumstances of the appellant's case, the learned CIT(A) has erred in not adjudicating the Ground No. 1.1 to 1.3 which are as follows: 1.1 Learned Assessing officer has erred in law by passing the order more particularly when no notice was served upon the assessee but was wrongly served upon one Mahesh Thakur who is not connected with the assessee and a servant of another co-possessioner of the shop. Hence the whole assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Act, 1961 to the appellant. 6. The appellant craves leave to add to, alter, amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal. 3. First, we take up the issue raised by the assessee in ground numbers 3 to 4 attached with the memo of appeal. The interconnected issue raised by the assessee is that the learned CIT (A) erred in not allowing the exemption under section 54F of the Act for the two residential units purchased during the year. 3.1 The facts in brief are that the assessee in the present case is an individual and engaged in the business of advancing money on interest. The assessee in the year under consideration has declared long-term capital gain amounting to Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al house. Had this been the intention of the legislature to restrict the exemption with respect to only one residential house, then the same should have been reflected in the language/provision of the Act by the word 'one' instead of 'a residential house'. As such the legislature has brought an amendment by the Finance Act 2014 wherein the word 'a residential house' was replaced with 'one residential house'. But such amendment is effective with effect from 1st April 2015 corresponding to assessment year 2015-16 whereas the case on hand relates to the assessment year 2014-15. Accordingly the assessee claimed that he is eligible for deduction/exemption for the investment made in two flats. 6. However, the learned CIT (A) rejected the content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , within a period of one year before or 32[two years] after the date on which the transfer took place purchased, or has within a period of three years after that date 32a[constructed, a residential house] (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,- 8.1 A plain reading of the above provision reveals that, subject to the conditions as specified under section 54F of the Act, the assessee can claim exemption for the investment made in a residential house. The question arises whether 'a residential house' reads as one residential house. To resolve the controversy, we note that different courts have taken different vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further find that there was an amendment under the provisions of section 54F of the Act wherein the word 'a residential house' was replaced with 'one residential house'. Such amendment was brought by the Finance Act 2014 which is effective from 1 April 2015 corresponding to assessment year 2015-16. This fact can be verified from the explanatory memorandum to amendment in Finance Act 2014 which reads as under: The existing provisions contained in sub-section (1) of section 54F, inter alia, provide that where capital gains arises from transfer of a long-term capital asset, not being a residential house, and the assessee within a period of one year before or two years after the date of transfer, purchases, or within a period of three years a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
