TMI Blog2021 (1) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... tled as Tilokchand Sons V/s ITO [2019 (4) TMI 713 - MADRAS HIGH COURT] held that if the word 'a' as employed under Section 54 prior to its amendment and substitution by the words 'one' with effect from 01/04/2015 could not include plural units of residential houses then there was no need to amend the said provisions by Finance Act No.2 of 2014 which the Legislature specifically made it clear to operate only prospectively from AY 2015-16. Once it is held that the word 'a' employed can include plural residential houses also within the meaning of Section 54 prior to its amendment, then such interpretation will not change merely because the purchase of new assets in the form of residential houses is at different addresses. So long as the same Assessee purchased one or more residential houses out of the sale consideration for which the capital gain tax liability is in question, in its own name, the same Assessee should be held entitled to the benefit of deduction u/s 54 of the Act, subject to the purchase or construction being within the stipulated time limit in respect of the plural number of residential houses also. It was also held that the amendmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er consideration u/s. 143(3) on 05/02/2014. It transpired that the assessee sold one residential property situated at Asha Deep Building JVPD and claimed exemption u/s 54 by making investment in two separate residential properties viz. (i) Flat in A-Wing, 6th floor, Leela Sagar, Yari Road, Versova, Andheri (W), Mumbai for ₹ 89.28 Lacs; (ii) Flat No.304, A-wing, 3rd Floor, Twin Star CHS situated at Srishti Complex, Saki Vihar Road, Opp. L T Gate, Powai, Mumbai for ₹ 70.44 Lacs. After considering factual matrix, Ld. AO opined that the deduction would be available to the extent of investment made in one flat only since the flats were located totally at two different locations. Reliance was placed on the decision of Mumbai Tribunal (SB) in Sushila M.Jhaveri (2007 107 ITD 327) while taking the said view. Accordingly, the deduction u/s 54 was restricted in the aforesaid manner. The stand of Ld. AO, upon confirmation by Ld. CIT(A), is under challenge before us. Our Adjudication 4.1 We find that the provisions of Sec. 54 of the Income Tax Act, 1961 as it stood during AY 2011-12, provides for a deduction against certain Long-Term Capital Gains earned by an individual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construction being within the stipulated time limit in respect of the plural number of residential houses also. It was also held that the amendment made by The Finance Act, 2014 was intended to be specifically applied only prospectively with effect from AY 2015-16 since it took note of the judicial precedents for period prior to 01/04/2015. At the same time the decision of Hon ble Punjab Haryana High Court in Pawan Arya V/s CIT [11 Taxmann.com 312] was distinguished since no opinion, in detail, was expressed in the judgment. 4.3 The Hon ble Karnataka High Court in Khoobchand M. Makhija [43 Taxmann.com 143] considering the decision of same court in CIT V/s Smt. K.G.Rukminiamma [331 ITR 211] interpreted the term a in the context of Section 13 of the General Clauses Act, 1897 in the following manner: - 9. The word 'a' is not defined in the Act. When a word is not defined in the Act itself, it is permissible to refer to dictionaries to find out the general sense in which that word is understood in common parlance. However, in selecting one out of the various meanings of a word, regard must always be had to the context as it is a fundamental rule that the meanings of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrent 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. - (i) words importing the masculine gender shall be taken to include females; and (ii) words in the singular shall include the plural, and vice versa. 14. This Court in the case of CIT v. Smt. K.G. Rukminiamma [2011] 331 ITR 211/196 Taxman 87/[2010] 8 taxmann.com 121 (Kar.), had an occasion to consider Section 54 of the Act and had held as under: 'For a proper appreciation of the aforesaid contention, it is necessary to have a careful look at Section 54 of the Income Tax Act, which reads as under: 54. Profit on sale of property used for residence - (1) Subject to the provisions of sub-section (2), where, in the case of an assesses being an individual or a Hindu undivided family, the capital gain arises from the transfer of a long-term capital asset, being building ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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 asset. An asset newly acquired after the sale of the original asset also can be buildings or lands appurtenant thereto, which also should be a residential house. Therefore the letter a in the context it is used should not be construed as meaning singular. But, being an 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 General Clauses Act. This is the view which is taken by this court in the aforesaid Anand Basappa's case in I.T.A.No. 113/2004, disposed of on September 20, 2008 CIT v. D. Ananda Basappa [2009] 309 ITR 329 (Kar.)].' 4.4 Similar view has been expressed by Hon ble Madras High Court in its ear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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