TaxTMI 
TaxTMI 
2019 (6) TMI 349
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.... The Ld. CIT(A) has erred both in law and in facts of the case in making the above disallowance without providing any opportunity to the appellant to represent his case before himself. 3. The impugned assessment is invalid and without jurisdiction as the said assessment is completed without complying with requirements of the provisions of Income Tax Act therefore such assessment is void ab initio and liable to be quashed. The facts relevant for adjudication are that the assessee has sold a vacant plot at village Budhpur, Narela, Delhi on 16.08.2012 for a consideration of Rs. 170,65,000/- and purchased three residential houses as per the details as under : SI. No Name/address of plot as per sale deed Date iii purchase/investment in property Name of party of purchase Sale consideration 1. Property no. 421 (old) and new no. 521, Lahori Gate, Delhi 14-Dec-2012 Smt. Veena Gupta Smt. Kiran Arora Rs. 24,50,000/- 2. Property no. 420 Lahori Gate, Delhi 14-Dec-2G12 Smt. Veena Gupta Smt. Kiran Arora Rs. 24,50,000/- 3. Property no. 419 Naya Bans, Khari Baoli, Delhi 13-Feb-2013 1. Sh. Tara Chand Garg Rs. 45,00,000/- Total Rs. 94,00,000/- The AO has rej....
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....) emphatically deals with the acquisition of multiple houses and held that "the expression "a" residential house should be understood in a sense that building should be of residential in nature and "a" should not be understood to indicate a singular number. Also, section 54/54F uses the expression "a residential house" and not "a residential unit". Section 54/54F requires the assessee to acquire a "residential house" and so long as the assessee acquires a building, which may be constructed, for the sake of convenience, in such a manner as to consist of several units which can, if the need arises, be conveniently and independently used as an independent residence, the requirement of the Section should be taken to have been satisfied. There is nothing in these sections which require the residential house to be constructed in a particular manner. The only requirement is that it should be for the residential use and not for commercial use. If there is nothing in the section which requires that the residential house should be built in a particular manner, it seems that the income tax authorities cannot insist upon that requirement. A person may construct a house according to his plans, ....
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.... bigger residential house, it cannot be said that assessee has purchased more than one residential house unless the other units purchased constitute a separate house. The view taken by the AO is against the well settled position of taw that residential units having contiguity with each other being adjacent units are required to be considered as a single residential house. It is an undisputed fact on record that appellant has not purchased within one year after the date of transfer of original asset any other residential house. Therefore the action of the AO in denying the deduction u/s 54 F of the Act based on non-compliance of the above proviso is against the latter and spirit of law laid down by various authorities including the decision of the jurisdictional High Court in the case of Gita Duggal duly approved by the Hon'bie Apex Court (both supra). 1.6.4 Therefore in view of above it is prayed that exemption u/s 54 F as claimed in the revised computation filed before the AO be kindly allowed and action of the AO be quashed." Vide the written submissions filed before the Tribunal, the assessee contended that the explanation "a" residential house used in the section shoul....
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....er such dte any residential house, the income from which is chargeable under the head "income from house property", other than the new asset. Explanation.-For the purposes of this section,- "net consideration", in relation to the transfer of a capital asset, means the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by any expenditure incurred wholly and exclusively in connection with such transfer. (2) Where the assessee purchases, within the period of two years after the date of the transfer of the original asset, or constructs, within the period of three years after such date, any residential house, the income from which is chargeable under the head "Income from house property", other than the new asset, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such new asset as provided in clause (a), or, as the case may be, clause (b), of sub-section (1), shall be deemed to be income chargeable under the head "Capital gains" relating to long-term capital assets of the previous year in which such residential house is purchased or constr....
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.... rooms with one common kitchen space and one common bathroom in which two rooms are found vacant. Further, in the other two rooms one person named Sh. Kaiiash was found to be present and on asking he informed that he is the labour of Sh. Ravi Jain and living in these two rooms since last 3-4 years with his family. The rent is not paid by him to anyone. Third Floor- This floor consists of 5 rooms with one common kitchen space and one common bathroom in which three rooms are found vacant, Further, in one room one-person named Sh. Gopai was found to be present and on asking he informed that he is the staff j | of M/s Shree. Jaina Rice Private Limited and the rent j is not paid by him to anyone. The fifth room was found locked and when asked, the assessee informed that the said side of the building where the room is located has been sold by Sh. Ravi Jain to some Sh. Rakesh Jain. When asked for the proof of the same, he produced the copy of the sale deed which is enclosed with this report. Second Floor- This floor consists of 6 rooms with one common kitchen space and one common bathroom in which four rooms are found vacant. Further, in one room one person named Sh. Mukesh was found to....