TaxTMI 
TaxTMI 
2015 (11) TMI 1443
X X X X Extracts X X X X
X X X X Extracts X X X X
....in this group of seven assessees being 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, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f this contention, reliance was placed on the following decisions- (a) 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 16....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Revenue. Further, it was submitted that that the facts are not disputed by the Revenue, and as for the only issue in dispute being whether the assessee 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 juri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on 54F of the Income Tax Act, which reads as follows: 54F. Capital gain on transfer of certain capital assets not to be charged in case of investment in residential 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Finance (No.2) Act, 2014, which will come into effect from 01.04.2015. The said amendment reads as follows: "32a. Words "constructed, one residential house in India" shall be substituted for "constructed, a residential 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. Pr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... dealing with the benefit of exemption under Section 54F, followed the above-said decision of this Court in T.C.(A)No.656 of 2005 and granted the benefit to the assessee under Section 54F of the Income Tax Act on the investment made in the four flats. 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 a....