TaxTMI 
TaxTMI 
2019 (9) TMI 1031
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....es and income from other sources. The business income derived is by way of remuneration from a partnership firm where assessee is a partner. The return of income for the A.Y.2010-11 was filed by the assessee on 06/01/2011 declaring total income of Rs. 4,28,120/-. The return was processed u/s.143(1) of the Act. Later, the case was reopened on the basis of information received from ITO-16 (2)(2), Mumbai. During the course of assessment proceedings of assessee's wife, it was noticed that assessee had sold immovable property for consideration of Rs. 2 Crores. The capital gains received from sale of the said property was not offered for taxation by the assessee. Hence, assessment was reopened. During the year under consideration, the assessee computed long term capital gains of Rs. 99,93,552/- and claimed deduction u/s.54 of the Act of Rs. 99,93,552/- and declared nil capital gains. The assessee vide letter dated 13/08/2014 submitted copy of sale agreement and two purchase agreements for justifying the claim of deduction u/s.54 of the Act. The ld. AO observed that assessee had reinvested the sale consideration from sale of other property in purchase of two new residential properti....
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....d chosen not to prefer any appeal considering the litigation cost involved therein ; considering the age of the assessee and in order to buy peace of mind. These facts are duly reflected in para 4 of the affidavit of the assessee. Hence, by placing reliance on the decision of the Hon'ble Supreme Court in the case of Collector, Land Acquisition vs. MST. Katiji and Others reported in 167 ITR 471, we are inclined to condone the delay in the peculiar facts and circumstances of the instant case and admit the appeal of the assessee for adjudication. 4. We find that the facts of the issue in dispute have already been narrated hereinabove. The only dispute is with regard to eligibility of claim of deduction u/s.54 of the Act in respect of two new residential properties purchased by the assessee out of sale consideration of old property. We find that the issue in dispute is squarely covered in favour of the assessee by the Co-ordinate Bench of this Tribunal in case of Ravishankar vs. ACIT in ITA No.3270/Mum/2016 dated 17/01/2018 wherein it was held as under:- "9. We have heard the authorized representatives for both the parties, perused the orders of the lower authorities and th....
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....ense in which that word is understood in common parlance. However, in selecting one out of the various meanings of a word, regard must always be had to the context as it is a fundamental rule that the meanings of words and expressions used in an Act must take their colour from the context in which they appear. Therefore, when the context makes the meaning of a word quite clear, it becomes unnecessary to search for and select a particular meaning out of the diverse meanings a word is capable of, according to lexicographers. Dictionaries are not dictators of statutory construction where the benignant mood of a law, and more emphatically, the definition clause furnishes a different denotation. A statute cannot always be construed with the dictionary in one hand and the statute in the other. Regard must also be had to the scheme, context and to the legislative history. Words and expressions at times have a "technical‟ or a legal meaning‟ and in that case they are understood in that sense, Judicial decisions expounding the meaning of words in construing statutes in parimateria will have more weight than the meaning furnished by dictionaries. (Principles of Statutory Interpre....
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....Subject to the provisions of sub-section (2), where, in the case of an assesses being an individual or a Hindu undivided family, the capital gain arises from the transfer of a long-term capital asset, being buildings or lands appurtenant thereto, and being a residential house, the income of winch is chargeable under the head "Income from house property‟ (hereafter in this section referred to as the original asset), and the assesses has within a period of one year before or two years after the dole on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say, -......." 9. A reading of the aforesaid provision makes it very clear that the property sold is referred to as original asset in the section. That original asset is described as buildings or lands appurtenant thereto and being a residential house. Therefore, it is not mere "a residential house". The residential house may ....
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....he aforesaid Anand Basappa's case in I.T.A.No. 113/2004, disposed of on September 20, 2008([2009] 309 ITR 329 (Kam)]. " 15. That was the case where the assessee gave his property for joint development agreement for putting up flats. Under the terms of the agreement, out of eight flats to be put up, four flats had to be given to the assessee, representing 48%, the consideration for the said four flats was consideration for selling 52% of the site. It was held that, though under the joint development agreement, the assessee received four residential flats, it constituted a residential house for the purpose of Section 54 and therefore, entitled to the said benefit. 16. In the instant case, one residential house is sold. Out of the sale consideration, it was open to the assessee to purchase a big residential house so as to accommodate both his sons, in which event in terms of Section 54 (1), he would have been entitled to the benefit of the said Section. However, instead of purchasing one big house, having regard to the fact that both his sons are grown up, have families and in order to see that in future there won‟t be any litigation or disharmony, he chose....