TaxTMI 
TaxTMI 
2020 (11) TMI 253
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.... the grounds raised by the Assessee was with regard to, whether the assessee was entitled to claim deduction u/s. 54F of the Income-tax Act, 1961 [the Act] in respect of capital gain on sale of a property at HSR Layout, Bangalore, which capital gain was invested in purchase of a property at N.R. Colony. 3. The case of revenue was that for claiming deduction u/s. 54F of the Act, the assessee should not own more than one house, other than the new asset. The N.R. Colony property was a single piece of property, but Ground Floor was owned by one person and 1st Floor was owned by another person. It was the case of revenue that since the owners were different, it has to be construed that the assessee purchased two properties and since the assesse....
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....s. In such circumstances, the assessee has purchased only one property and not two properties. In this regard, the decisions cited by the ld. Counsel for the assessee before us supports the plea of the assessee viz., the decision of the Delhi High Court in the case of CIT Vs. Gita Duggal (2013 30 taxmann.com 230 (Delhi). In the aforesaid decision, the facts were that the assessee entered into a development agreement pursuant to which the developer demolished the property and constructed a new building comprising of three floors. In consideration of granting the development rights, the assessee received Rs. 4 crores and two floors of the new building. The AO held that in computing capital gains, the cost of construction of Rs. 3.43 crores in....
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....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 to us that the income tax authorities cannot insist upon that requirement. A person may construct a house according to his plans, requirements and compulsions. A person may construct a residential house in such a manner that he may use the ground floor for his own residence and let out the first floor having an independent entry so that his income is augmented. It is quite common t....
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....al is after the aforesaid amendment, the conclusions drawn by the Tribunal are incorrect and suffers from an apparent mistake on the face of record and should be rectified suitably. 5. We have heard the rival submissions. The ld. DR reiterated the stand of revenue as contained in the petition. 6. We are of the view that there is no mistake, much less an apparent mistake, in the order of the Tribunal. The Tribunal in para 20 of its order has clearly given a finding that the property at N.R. Colony belonged to one owner, Smt. Janaki Iyengar and as per the Will of Smt. Janaki Iyengar, the Ground Floor of the premises which was numbered as Door No.37 was given to Smt. Janaki's sister, Dr. M. Vaidehi and the 1st Floor numbered as Door No.37/1 ....