2014 (7) TMI 1264

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.... said property on 08.03.2004 under a registered sale deed for a consideration of Rs. 1,44,50,000/-. Out of the sale consideration, he purchased a property bearing No.11/94, Model House Street, Basavanagudi, Bangalore, under a registered sale deed dated 26.05.2004 for a consideration of Rs. 65,88,330/-. Out of the balance sale consideration, he invested a sum of Rs. 24,01,000/- on 30.07.2004 in Capital Gains Scheme Account No.3/2004 with Canara Bank, Hanumanthanagar Branch, Bangalore, for the purpose of renovation/construction. He also purchased RECC bonds of Rs. 5,00,000/- on 30.07.2004. The assessee claimed exemption under Section 54 of the Act in respect of investment in house property, investment in Capital Gains Scheme and deduction und....

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....appeal before the Commissioner of Income Tax. The appellate Authority after referring to the earlier judgments of the Tribunal held, there is no bar in claiming deduction under Section 54 in respect of investment made in more than one house. Although the assessee's intention of investing in the Capital Gains Scheme initially was to renovate and construction, he decided to withdraw and invest the same in another residential house. It makes no difference as far as deduction under Section 54 is concerned and therefore, he allowed the appeal by setting aside the order of the assessing authority. Aggrieved by the same, the revenue preferred an appeal to the Tribunal. 5.The Tribunal after referring to some of the judgments of the Tribunal held....

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....the case of COMMISSIONER OF INCOME TAX VS. KHOOBCHAND M. MAKHIJA reported in (2014) 43 Taxmann.com 143 (Karnataka), where after referring to the meaning of the word "a" in the dictionaries and referring to the provisions of the General Clauses Act and also Section 54 of the Act held, the letter "a" in the context, which is used, should not be construed as meaning singular, the singular "a residential house" also permits use of plural by virtue of the General Clauses Act. In that case it was held that acquisition of two residential houses by the assessee out of the capital gains falls within the meaning of "residential house" and accordingly, the assessee is entitled to the benefit conferred under section 54(1) of the Act. It was also made c....