TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 1312
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....of the Income Tax Act, 1961 (Act) to the assessee. 3. The facts and circumstances under which the deduction u/s 54F of the Act was claimed by the assessee are as follows:- The assessee is an individual. He sold a property and derived long term capital gain (LTCG)on sale of property of Rs. 75,41,185/-. Under the provisions of section 54F of the Act, a deduction while computing long term capital gain has allowed, if the long term capital gain arises on transfer of long term capital asset not being a residential house, if within 2 years from the date of transfer, the assessee has purchased a residential house. In the present case, there is no dispute that the Assesse sold a long term capital asset not being a residential house. The Assessee ....
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....High Court in the case of MB Ramesh Vs. ITO (2010) 320 ITR 451 in which the question for consideration was with regard to deduction u/s.54 of the Act. U/s.54 of the Act, a deduction while computing long term capital gain has allowed, if the long term capital gain arises on transfer of long term capital asset being a residential house. The question before the AO in that case was whether the property sold by the Assessee fitted into the description of a residential house. The revenue authorities and Tribunal found that what was sold by the Assessee was a mud structure not worthy of being called residential house. The Hon'ble High Court refused to admit the Assessee's appeal by holding that no question of law arises for consideration and the ....
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....question was whether a house of 200 sq.ft. RCC with cement floor and civic amenities on the said property could be said to be "a residential house" for the purpose of allowing deduction u/s.54F of the Act. The Hon'ble High Court approved the findings of the Tribunal and held that the assessee fulfilled conditions for grant of exemption under section 54F of the Act. 6. The CIT(A) found that there was no dispute that there was a constructed shed of 100 Sq.ft. with ACC sheet roofing with walls of brick and mortar and cement flooring and the Assessee's employee has been staying to look after the property. He was of the view that a structure can be considered habitable even in the absence of Electricity and water supply. He was of the view....
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....erwise it cannot be termed as residential house. According to him a structure which is not habitable is not residential house because nobody can reside in such structure. The learned counsel for the Assessee relied on the order of the CIT(A). 8. We have given a very careful consideration to the rival submissions. The provisions of Sec.54F of the Act, reads thus: '54F. Profit on sale of property used for residence:- (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 a long-term capital asset, not being a residential house,(hereinafter referred to as the original asset), and the assessee has within a period of o....