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TMI Blog2021 (9) TMI 1138X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts related to the above said issue are stated in brief. During the year under consideration, the assessee has sold a property jointly held by him along with his brother for a consideration of Rs. 10 Crores, of which the assessee's share was 50%. The assessee computed capital gain at Rs. 3.21 crores. The assessee stated that he has invested a sum of Rs. 2.06 crores in the capital gains account scheme. Besides the above, the assessee claimed that he has spent a sum of Rs. 50 lakhs towards construction of a house at Rupena Agrahara on a site, which was purchased for a sum of Rs. 36 lakhs on 29.1.2015. The assessee claimed exemption u/s 54F of the Act in respect of above said investments. 3. The A.O. noticed that the house property const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the ground floor of the property re-numbered as No.37 and the first floor as Door ITA No. 2692/Bang/2018 No.37/1 of 1st Main Road, N.R.Colony. Janaki Iyengar executed a will on 28.5.1975 wherein she bequeathed to her sister Dr.M.Vaidhei with Door No.37 which is Schedule-A of the Sale Deed under which the Assessee purchased this property and the first floor bearing door No.37/1, described in Schedule B in the sale deed under which Assessee purchased the new asset to her nephew P.Ramanuja Chari. Janaki Iyengar died on 6.6.1975 and the legatees under the will sold their respective shares in one property to the Assessee. The entire property constitutes single house but was bifurcated with two door numbers for the ground and first floor with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar). On appeal by the ITA No. 2692/Bang/2018 department, the High Court dismissed the appeal of the revenue. The Hon'ble Court observed that as held in B.AnandaBassappa (SLP dismissed) & K G Rukminiamma, the Revenue's contention that the phrase "a" residential house would mean "one" residential house is not correct. The expression "a" residential house should be understood in a sense that building should be of residential in nature and "a" should not be understood to indicate a singular number. Also, section 54/54F uses the expression "a residential house" and not "a residential unit". Section 54/54F requires the assessee to acquire a "residential house" and so long as the assessee acquires a building, which may be constructed, for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dispose of a part thereof as an independent house. There may be several such considerations for a person while constructing a residential house. The physical structuring of the new residential house, whether it is lateral or vertical, cannot come in the way of considering the building as a residential house. The fact that the residential house consists of several independent units cannot be permitted to act as an impediment to the allowance of the deduction u/s 54/54F. It is neither expressly nor by necessary implication prohibited. 21. We are therefore of the view that the Assessee was entitled to claim deduction u/s.54F of the Act in respect of investment in the property bearing Door No.37 & 37/1, 1st Main Road, N.R.Colony, Bangalore. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amanuja Chari. Both these owners of Ground Floor and 1st Floor sold the property to the assessee. The Tribunal in para 20 of the order clearly observed that the entire property constitutes one residential house, but was bifurcated with two Door Nos. for Ground Floor and 1st Floor with common entrance in Ground Floor only to earmark the share of each beneficiary and that otherwise the property constitutes a single property, though it has two different Door Nos. The Tribunal has reached the conclusion that assessee has purchased only one property and not two properties. Though the Tribunal has made a reference to the decisions rendered by the Hon'ble Delhi High Court in the case of Gita Duggal (2013) 30 Taxmann.com 230(Delhi) in which fla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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