2020 (9) TMI 238

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....dated 29-08-2018 & 29-10-2018 (for ITA Nos.297, 298 & 340/H/19). 2. Since the facts and issues involved in all these appeals are common and identical, except for the amounts mentioned therein, all these appeals were heard together and are being disposed-of by way of this common and consolidated order. For the sake of convenience, appeal in ITA No.297/Hyd/2019 is discussed hereunder in detail: Brief facts of the case are that, all the assessees being family members and co-owners of a plot of land admeasuring 1885 Sq. Yds., with an AC shed of 2100 sft., located on Road No.3, Banjara Hills, Hyderabad sold the same for a sum of Rs. 3,54,40,000/- vide Sale Deed dt.06-03-2006. The sale consideration was shared by the co-owners in proport....

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....al Precedents holding the field and binding on all the tribunals and Hon'ble Courts in the country. The impugned order is contrary to the law of precedents. 2. The CIT(A) findings at Para 8.9 of the impugned order is a gross impropriety and a classic example of impropriety and violation of application of Judicial precedents referred by the CIT(A) himself. It is a total misdirection and a perverse order by the CIT(A). Having observed in Para 8.9 that the Hon'ble Karnataka High Court and others are in favour of the Appellant, should not have dismissed the appeal. Wrongly observed that I would like rely upon the decisions which are in the favour of the department. 3. The decisions relayed upon by the CIT(A) pertains t....

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....fying the same, has confirmed the disallowance only on the ground that the remodification or renovation of the house is not covered u/s.54F of the Act. Ld.Counsel therefore prayed that the exemption u/s.54F of the Act be granted to the assessee. 7. Ld.DR, on the other hand, supported the orders of the authorities below and submitted that the assessees have to invest the capital gain in a new asset to be eligible for exemption u/s.54F of the Act and since the assessees are seeking the money spent on renovation of the house which is already existing, they are not entitled for exemption u/s.54F of the Act. 8. Having regard to the rival contentions and material on record, we find that the assessees have sold an open plot of land with an A....

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....n should be invested in 'a residential house' within the stipulated time by way of purchase or construction. Thus, the amount spent on renovation of such residential house by an assessee according to his requirements is also allowable as exempt u/s.54F of the Act as it would amount to construction of a residential house. The only other requirement is that the construction should be completed within three years from the date of transfer of the original asset. Further, the CIT(A) also agrees that the issue is covered in favour of the assessee by the decisions of the Hon'ble Karnataka and Calcutta High Courts but chooses to follow the decisions against the assessee. The Hon'ble Bombay High Court in the case of CIT Vs. Godavari Devi Sar....