AI Drafter 
TaxTMI 
TaxTMI 
2020 (7) TMI 218
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....case are that during the year under consideration, assessee sold two residential flats situated at Andheri, Mumbai and purchased one residential flat at Noida. The details filed on record shows that the assessee has modified the flats in two flats (units) and sold through two different registrations. The A.O. noted that assessee has sold flat A-401 and flat B-401, 4th Floor, Brighton Tower Cooperative Housing Society Ltd., Plot No.356, Cross Road No.2, Lokhanwala Complex, Andheri (West), Mumbai. The assessee purchased one flat at Noida bearing flat No.Aster-1/902, 8th Floor, Super Tech Emerald Court, Sector-93A, Noida. Thus, the assessee calculated the gross amount of capital gain from the sale of two flats and claimed exemption under section 54 of the I.T. Act, 1961 in gross amount investment in one residential house. The A.O, however, noted that the exemption under section 54 in respect of the aggregate amount of capital gain and aggregate value of investment in residential value was not found allowable under section 54 of the I.T. Act. The A.O. was of the view that Section 54 makes it clear that the said Section speaks of exemption in respect sale of a residential house and purc....
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....ide Order Dated 22.06.2012 held as under : "10. Having held that the two flats were two different residential houses, it is required to be examined whether the assessee is entitled for exemption u/s 54 of the Act in respect of the sale of more than one residential houses. We see no restriction placed in section 54 that exemption is allowable only in respect of sale of one residential house. Even if the assessee sells more than one residential houses in the same year and the capital gain is invested in a new residential house, the claim of exemption cannot be denied if the other conditions of section 54 are fulfilled. This aspect had been examined by the Mumbai Bench of the Tribunal in Rajesh Keshav Pillai v. Incometax Officer [2011] 44 SOT 617 (Mum.) in which it has been held that exemption u/s 54 will be available in respect of transfer of any number of long-term capital assets being residential houses if other conditions are fulfilled. The Id. DR appearing for the Revenue has placed reliance on the judgment of the Hon'ble High Court of Punjab and Haryana in the case of Pawan Arya v. CIT (237 CTR 210) (supra) to argue that the claim of exemption is not available ....
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....se, exemption u/s 54 will be available in case of sale of each flat provided the time limit of construction or purchase of the new residential house is fulfilled in case of each flat sold. 12. In relation to flat in Vishnu Villa, the AO has given a finding that the flat had been used for the purpose of business and, therefore, is not eligible for exemption u/s 54 which allows exemption only in respect of residential house income from which is chargeable under the head "income from house property". The AO has drawn his conclusion based on the ground that the assessee had not returned any income from Vishnu Vila Flat. The AO had treated the Ramkrishna Sadan flat as self occupied property and, therefore, in his opinion, the income from Vishnu Vila property could be exempt from house property only if the same was used for business as only one flat could be treated as self occupied property. The CIT(A) has not accepted the finding given by the AO and we agree with the view taken by CIT(A). The assessee had shown no income from Vishnu Vila flat because the assessee had treated both the flats as one residential house which had been used as a self acquired property. Therefore, onl....
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....825 of 2009." 7. In the result, the appeal of the revenue is dismissed." 7.2. Considering the facts of the case in the light of above decisions of the Tribunal, it is clear that assessee has purchased two residential flats at Andheri bearing flat A-401 and flat B-401, 4th Floor, Brighton Tower Cooperative Housing Society Ltd., Plot No.356, Cross Road No.2, Lokhanwala Complex, Andheri (West), Mumbai and assessee modified both the flats and converted two units as one residential unit. This fact is also mentioned in statement of facts and by the A.O. in the assessment order. The assessee has further sold both the flats through two separate sale deeds. It is an admitted fact that assessee has purchased residential flat at Noida within the permitted time period from the sale of the residential flats. Thus, the above decisions of the ITAT, Mumbai Bench are squarely apply to the facts and circumstances of the case that assessee is entitled for exemption under section 54 of the I.T. Act, 1961. The issue is, thus, covered by the aforecited Orders of the ITAT, Mumbai Bench (supra). In view of the above, I set aside the Orders of the authorities below and delete the entire addition o....
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....rther submitted that the issue is covered by the CBDT circular number 207/24/76 IT (II) dated 25.3.1997 as well as by the decision of this Tribunal in case of Hamayan S Rangila (supra). 5 We have considered the rival submissions of the parties as well as relevant material on record. The expression used in section 54 is "transfer of a long term capital asset' being the residential house" refers to a residential house which may comprise more than one building or buildings structure; but the same are used as a single residential house. Further, the terms buildings or lands as used in the earlier part of section 54 makes it clear that a residential house may comprises of more than one land and buildings. Thus, even if more than one unit are adjacent to each other and are being used as a single residential house by the assessee and his family members. The same would be considered as residential house u/s 54 of the IT Act. The Assessing Officer has not disputed the fact that all these flats were used by the assessee as residential house; therefore, the requirement of section 54 is the capital gain arising from transfer of a residential house i....