TaxTMI 
TaxTMI 
2015 (11) TMI 1443
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....co-sharers. The issue involved in these appeals is with reference to the claim of deduction under S.54F on the units allotted to the respective assessees, consequent to the development agreement. Common issues are involved and common grounds raised. Hence, we have heard these appeals together and decide them by this common order. For the sake of discussion, the facts in the case of Shri K.Venu (ITA No.1193/Hyd/2015) are discussed hereinafter. 2. The Assessing Officer initiated proceedings under S.147 of the Income Tax Act,1961 on the assessee alongwith co-owners, as they have transferred a plot of land admeasuring 7,750 sq. yards open land situated at Begumpet, Hyderabad in favour of the developer, M/s. Shreemukh Creators. In the course of....
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....) CIT V/s. Syed Ali Adil (33 Taxmann.com.212) - AP HC (b) Vithal Kanjeevaram Vs. ITO (ITA No.422/H/13 dt. 10.07.13) ITAT Hyderabad (144 ITD 325) (c) CIT V/s. Gita Duggal Delhi High Court (d) K.G.Vyas Vs. ITO (161 ITD 195) Bom. (e) ITO V/s. PC Ramakrishna (108 ITD 251)-Chennai (f) CIT V/s. D.Ananda Basappa (309 ITR 329) Kar. HC (g) CIT V/s. K.G.Rukminiamma (331 ITR 211)-Kar. HC (h) A.P. High Court in Syed Ali (i) CIT V/s. V.R. Karpagam dt. 18.08.14 of Chennai High Court (j) N.Revathi V/s. ITO Ward 6(4) Hyderabad (ITA No.67/Hyd/2013 order dated 2.4.2014) (k) AP High Court in 169 ITR 564 The learned CIT(A) in her brief order allowed the contentions of the assessee stating as under- "05.2.2. The submission has ....
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....essee would be entitled to claim exemption on all the units or one residential unit, he referred to the decision of Hon'ble Madras High Court in the case of CIT V/s. Smt. V.R.Karpagam (supra), wherein Hon'ble High Court has referred to the amendment brought to the provisions of the Act. He also relied on the judgment of the Hon'ble Delhi High Court in the case of CIT V/s. Gita Duggal (357 ITR 153), in which the Hon'ble Supreme Court has not a admitted further appeal by the Revenue, as reported in 228 Taxman 62(SC). On this proposition, the learned counsel also relied on the jurisdictional High Court judgment in the case of CIT V/s. Syed Ali Adil (33 taxmann.com.212)(AP), and Vittal Krishna Conjeevaram, Secunderabad (ITTA No.....
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....sidential house.-- (1) Subject to the provisions of sub-section (4), where, in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,-- (a) if the cost of the new asset is no....
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....al house" by the Finance (No.2) Act, 2014, with effect from 01.04.2015." 10. The above-said amendment to Section 54F of the Income Tax Act, which will come into effect only from 01.04.2015, makes it very clear that the benefit of Section 54F of the Income Tax Act will be applicable to constructed, one residential house in India and that clarifies the situation in the present case, i.e, post amendment, viz., from 01.04.2015, the benefit of Section 54F will be applicable to one residential house in India. Prior to the said amendment, it is clear that a residential house would include multiple flats/residential units as in the present case where the assessee has got five residential flats. We may also mention here that all the Authorities b....
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.... 13. Hence, the above-said decisions of this Court make it clear that the property should be assessed as one unit, even though different flats are available......" 8. The jurisdictional High Court in the case of CIT V/s. Vittal Krishna Conjeevaram (supra), following the decision in the case of CIT V/s. Syed Ali Adil (supra) and the decision of the Delhi High Court in the case of CIT V/s. Gita Duggal (supra) dismissed the appeal of the Revenue, confirming the order of the ITAT. The above judgments lay down a principle that merely because a residential house consists of several independent residential units, deduction under S.54/S.54F could not disallowed. Respectfully following the decision of the Hon'ble jurisdictional High Court in t....