2012 (9) TMI 360

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....y the assessee u/s 54F of the IT Act, 1961 ('The Act'). 3. The material facts are as follows; The assesseee is an individual. During the previous year relevant assessment year 2006-07, the assessee derived long term capital gains of Rs. 1,04,81,067/-, The assessee invested Rs. 23.00 lakhs REC Bonds and claimed exemption of this expenditure u/s 54EC of the Act. The same was allowed by the AO. The assessee also claimed that it had also invested capital gain to the extent of Rs. 85.00 lakhs in purchase of a residential house and was entitled to exemption from tax on capital gain to the extent of such investment. 4. The AO noticed that the claim of the assesseee for investment in purchase of a residential house was in respect of a prop....

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....for the definition of residential house". 5. On appeal, by the assessee, the CIT(A) confirmed the order of the AO giving rise to the present appeal filed by the assessee before the Tribunal. 6. We have hard the rival submissions. The facts as can be culled out from the documents in the paper book filed by the assessee shows that the assessee purchased the property in question under a sale deed dated 04-07-2005. The description of the property purchased as given in Schedule-B to the sale deed shows that alongwith 19.6 guntas of land 4 squares built-up residential house was also transferred to the assessee. Further, the property has been assessed to tax by the Bangalore Zilla Parishad and the description of the tax in their records is '....

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.... purchase was on a open plot of land having some insignificant structure which might under some circumstances, be used for residence. On a perusal of the aforesaid judgment, we find that it was not in dispute in that case that the property in question was a plot having boundary wall and a garage-cum-room constructed thereon. It is in those circumstances, the Hon'ble Court came to the conclusion, that it was not fit for habitation and therefore, cannot be considered as a residential house. In our opinion, the aforesaid judgment cannot be applied to the facts of the present case, where the assessee contends that there was a house fit for habitation measuring 4 squares building which is being assessed to tax by the Municipal authorities. Anoth....