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TMI Blog2021 (6) TMI 669X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in not upholding the order of the Assessing Officer in restricting the claim of the assessee u/s 54F of the Income tax Act, 1961 to one flat as against the claim of the assessee for exemption in respect of the entire constructed area received. 3. Whether in the facts and circumstances, the Id.CIT(A) is justified in allowing the exemption claimed u/s 54F when the assessee received multiple flats located on different floors separated by different blocks of a gated community/ apartment complex. 4. Whether in the facts and circumstances, the Id.CIT(A) is justified in deleting the addition relying on the decision of Sri Syed Ali Adil by not considering that the facts of the case are distinguishable and not applicable to the facts of the present case. 5. Any other ground(s) that may be urged at the time of hearing." 3. As the facts and grounds raised in these appeals are identical, we cull out the facts from the appeal in ITA No. 732/Hyd/2019 . The decision taken in this appeal mutatis mutandis shall apply to the other appeals. 4. Briefly, the facts of the case are that the assessee is an individual. For the AY 2011-12, the AO initiated action u/s 147 of the Act on the gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titled for exemption u/s 54F. Further, he held that it is also important to note that an amendment u/s. 54F took place vide Finance Act, 2014, wherein, "a residential house" was substituted with "one residential house in India w.e.f. 01.04.2015. The said amendment very clearly states that prior to 01.04.2015, the section did not restrict the investment to only one residential house. Therefore, from the above decisions and subsequent amendment, the reinvestment quantum for eligibility u/s. 54F cannot be limited to one residential house. Therefore, he directed the AO to consider all the residential flats received as consideration as part of re-investment for the purpose of section 54F. 8. Aggrieved by the order of CIT(A), the revenue is in appeal before the ITAT. 9. The ld. CIT-DR relied on the order of the AO, while, the ld. AR of the assessee relied on the order of the CIT(A). 10. We have considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. The AO restricted the exemption u/s 54F claimed by the assessee only to the extent of investment in one residential flat and denied on the other residential flats. Wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 B4 31935 Partial Block B4 Flat 1 x 5 Flrs 7875 B7 60945 Full Block B5 Full Block 30970 B8 15050 2x3BHK x 5floor B6 Full Block 30970 B9 30197 Partial Block B8 Partial Block 45800 B10 12289 Partial Block B9 Partial Block 45298 B11/A 18943 EWS B10 Partial Block 15656 B11/A 30082 LIG B11/A EWS 15847 B11/B 7670 EWS B11/B EWS 7100 Total area in SFT = 300199 246921 SFT Collective area = 300199 + 246921 = 547120 10.4 Allotment of the apartments units between First Party and Second Party in the ratio of 42 : 58 at page No. 50 of paper book, is enclosed to the order as Annexure - 1. 10.5 Block-wise details are given at page 82 of paper book, which is enclosed to the order as Annexure - 2. 10.6 Further, in the agreement at page 63 & 64 of the paper book are mentioned as under: "12. That the "PARTIES" have further agreed that with regard to the division of the constructed area in Residential Township, the same shall be done as per the following: "Approximate Total Area of Construction of Apartments = 5,36,905 SFT Total Number ofIndependent Villas Approximately = 40 Nos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not haying any claim in and over the 2500 Sq. yds which is clearly mentioned in the plan in red colour annex to this Agreement and the said area Is abutting the 60 Feet of main Road which is facing towards East and South after deleting the area for the Transformer Yard on the Comer of South East. The Second party shall provide supply lines for Electrical, Drainage, Water (Gound and Municipal) etc and to develop them to the stage of Open Plots. However, any further construction and its implied expenses and deposits shall be borne by the First party itself. Moreover, Entry from these earmarked open plots into the developed layout shall not be permitted. It is mutually agreed that, a closed compound wall shall be constructed towards the West side of the said plots to restrict the access. Lf made mandatory by the Competent Authority to construct either Economic Weaker Section or Low Income Group. housing, and as such, the construction expenses shall be borne by SECOND PARTY only, but the area will be shared among the FIRST and SECOND parties @ 40% and 60 % respectively between First and Second Parties. The Mortgage of property towards Layout Development for the Concerned Authori ..... X X X X Extracts X X X X X X X X Extracts X X X X
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