2016 (5) TMI 1332

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 2. The Revenue has raised the following grounds:- "2.1 The learned CIT(A) erred in deleting the disallowance of claim u/s 54F by holding the assessee is eligible for the said claim even if the investment is made in more than one residential unit as the same is situating in the same door number relying on the decision of Jurisdictional High Court in the case of CIT Vs. V.R.Karpagam (2014) 50 Taxmann.com 55 (Mad.). 2.2 The learned CIT(A) ought to have seen the fact the assessee has invested in flats situating in different blocks which are separate from each other and the CIT(A) ought to have invoked the provisions of section 54F(2) of the Income Tax Act. 2.3 The learned CIT(A) failed to note the fact that even t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f development between assessee and his two sons as the one party and M/s. Akash Housing Property (builder) as other party agreed to 70:30 share subject to overall constructed area not exceeding 50600 sq.ft. In the event of permission granted for construction beyond 50600 sq.ft. the ratio will be revised to 55:45 on per supplementary agreement dated 03.05.2011. The assessee in the Return of income claimed Long term capital gains arising on relinquishment of 31.056% share in the property as Nil after availing exemption u/s.54 of the act. The long term capital gains computed as Rs. 2,02,21,146/- after reducing indexed cost of land & building & demolition charges and was revised to Rs. 1,94,85,385/- on the basis of decision of Bombay High Court....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ms and conditions of Agreement entered with developer and the judicial decisions on the definition of residential house, which was subsequently amended from 1st April 2015 by Finance Act, 2014 were the words "one residential house" cannot be equated with "a residential house" for earlier assessments and plurality of residential units can qualify for earlier assessment years. The law applicable to assessee are pre-amended provisions. The ld. Commissioner of Income Tax (Appeals) gave macro view on the interpretation of provisions and legal opinion with dictionary meaning of "one residential house" has allowed the appeal of the assessee with realistic findings at page No. 18 and 19 of his order as under:- "Considering the facts of the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... S.NO FLOOR FLAT BUILT UP' TOTAL ALLOTTED 1 THIRD A 3910   VARUN JAIN 2 B 1122   1 FOURTH B 1120           6152 TOTAL BUILT UP AREA ALLOTED 39260.   therefore relying on the judgement of the Honorable Madras High Court in the case laws of Smt. V.R. Karpagam v. ITO No. 301 of 2004 against the order dt.7.3.2013 made in ITA No.1082/Mad/2010 of the file of ITAT Chennai Bench,: CIT Vs Smt. V.R. Karpagam (2014) 50 taxmann.com 55 HC MADRAS brief gist " Section 54F of the Income-tax. Act, 1961 - Capital gains ,- Exemption of in case of ' investment in residential house (Meaning of residential house) - Assessm....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....l flat in the same block as per joint development agreement which is not in accordance with the provisions of law and prayed for set aside the order of Commissioner of Income Tax (Appeals). 6. Contra, the ld. Authorised Representative relied on the findings of the Commissioner of Income Tax (Appeals) and supported his arguments with jurisdictional High Court decisions and prayed for dismissing the appeal. 7. We heard the rival submissions, perused the material on record and judicial decisions. The ld. Departmental Representative main contention that assessee is not eligible for exemption u/s. 54F of the Act due to investment in more than one residential property in the same block. The fact that the assessee has entered into developmen....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t be charged under section 45 ; (b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under section 45: [Provided that nothing contained in this sub-section shall apply where- (a) the assessee,- (i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or (ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or (iii) constructs any reside....