9911796707
TMI Blog2021 (12) TMI 800X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether in the facts and circumstances, the order of the Id. CIT(A) in directing the Assessing Officer to allow the claim of the assessee u/s 54F of the Income Tax Act, is not perverse, illegal and likely to be set aside. 2. Whether in the facts and circumstances, the order of the Id. CIT(A) is justified in directing the Assessing Officer to consider all the residential flats received as consideration as part of reinvestment for the purpose of section 54F, when the assessee received multiple flats located on different floors separated by different blocks of gated community/apartment complex. 3. Whether in the facts and circumstances, the order of the Id. CIT(A) is justified in directing the Assessing Officer to consider all the residential flats received as consideration relying on the decision of Hon'ble AP High Court in the case of Sri Syed Ali Adil by not considering the facts of the case are distinguishable and not applicable to the flats of the present case. 4. Whether in the facts and circumstance, the Id. CIT(A) is justified in not considering the intention of the legislature while amending Section 54F of the Income Tax Act vide Finance Act 2014 which clarifies th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidential house which consists of multiple units." 6. The CIT(A) after considering the elaborate submissions as well as case law cited by the assessee, which were extracted in his order at pages 11 to 20 held that it is clear that even if the investment is made in multiple residential houses/units, the appellant will be entitled 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. 7. Aggrieved by the order of CIT(A), the revenue is in appeal before the ITAT. 8. At the time of hearing of this appeal, none appeared on behalf of the assessee and, therefore, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 60945 B8 C+S+5 Floor 12170 60850 B9 C+S+5 Floor 15099 75494 B10 S+5 Floor 5589 27945 B11/A S+5 Floor 17012 86935 B11/B S+5 Floor 2954 14770 Total built up area in flats = 547120 SFT Villa Area Statement Villas Nos Built up area Total area East 20 3135 62700 West 20 3175 63500 Total Area in Villas (SFT) = 126200 Open Plot Area Statement Plot No Land Area Open 1 625 Sq.Yds Open 2 625 Sq.Yds Open 3 625 Sq.Yds Open 4 625 Sq.Yds 10.3 Allotment of the apartment units between first party and second party: Area Distribution between owners and developers Owners Area Development Area Block Description Area in SFT Block Area in SFT Description B2 Full Block 39810 B1 39810 Full Block B3 Full Block 39810 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PROX. AREA OF CONSTRUCTION FOR INDEPENDENT HOUSES: 1,00,000 SFT (40 Villas) ALL THE" AREAS CONSJDEREDIMENTIONED herein are as per Saleable area in SFT only which includes total constructed area including balconies, sit out, staircases, lift rooms, Security rooms, games room, if any; electrical meter room, Economic Weaker Section, Low Income Group housing, pump room, generator rooms if any, common areas, circulation areas but excludes car parking area. The construction areas and the layout may be altered by the SECOND PARTY to meet the marketability demands, at any stage or as per stipulated rules of concerned authorities. That the First Party shall retain an area of 2500 Sq. yds out of Ac 10 - 20 Guntas for their exclusive use and enjoyment of the First Party with absolute right of Ownership. The Second party 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, Wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether one assessee has been allotted house/houses in a Block/Tower. We have gone through the allotment of apartment, which has been enumerated in para 10.3 cited supra, it is clear that some of the Blocks have been allotted fully to the assessee/assessees and some of the Blocks are partially allotted amongst the assessees and developers. In this regard, the AR of the assessee has not submitted any documents or any allotment letter for ascertaining the number of flats allotted to the assessee/assessees by the developers which is root for determining the deduction u/s 54F of the IT Act. The CIT(A)'s decision is right if the assessee has been allotted a house or more than a house in a Block/Tower as per the decision cited supra. The said blocks consist of more than a floor i.e. 5 floors. We, therefore, remit this file back to the AO for verification for the allotment of flats, which have been allotted to the assessee in a Block/Tower or in different Blocks/Towers. If the AO is found that the assessee has been allotted residential units in more than Blocks/Towers, the AO will recompute the capital gain afresh in the hands of the assessee as per law after providing reasonable opportuni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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