TaxTMI 
TaxTMI 
2021 (1) TMI 960
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.... the facts and circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeals) erred in upholding view of the then Assessing Officer in disallowing the part exemption of Rs. 60,85,931/- out of total exemption of Rs. 1,50,14,111/- claimed by Assessee u/s 54 of the Act on his own notions, surmises and conjunctures, ignoring the explanations and submissions made before him." 2. We have carefully heard the rival submissions and perused relevant material on record. Our adjudication to the subject matter of appeal would be as given in succeeding paragraphs. 3. The material facts are that an assessment was framed against the assessee for the year under consideration u/s. 143(3) on 05/02/2014. It transpired that the assessee sold one residential property situated at Asha Deep Building JVPD and claimed exemption u/s 54 by making investment in two separate residential properties viz. (i) Flat in A-Wing, 6th floor, Leela Sagar, Yari Road, Versova, Andheri (W), Mumbai for Rs. 89.28 Lacs; (ii) Flat No.304, A-wing, 3rd Floor, Twin Star CHS situated at Srishti Complex, Saki Vihar Road, Opp. L&T Gate, Powai, Mumbai for Rs. 70.44 Lacs. After considering factual matrix, ....
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....slature specifically made it clear to operate only prospectively from AY 2015-16. Once it is held that the word 'a' employed can include plural residential houses also within the meaning of Section 54 prior to its amendment, then such interpretation will not change merely because the purchase of new assets in the form of residential houses is at different addresses. So long as the same Assessee purchased one or more residential houses out of the sale consideration for which the capital gain tax liability is in question, in its own name, the same Assessee should be held entitled to the benefit of deduction u/s 54 of the Act, subject to the purchase or construction being within the stipulated time limit in respect of the plural number of residential houses also. It was also held that the amendment made by The Finance Act, 2014 was intended to be specifically applied only prospectively with effect from AY 2015-16 since it took note of the judicial precedents for period prior to 01/04/2015. At the same time the decision of Hon'ble Punjab & Haryana High Court in Pawan Arya V/s CIT [11 Taxmann.com 312] was distinguished since no opinion, in detail, was expressed in the judgment. ....
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....rticle is used in two contexts, firstly, in its original numerical sense of one. Secondly, in the vague sense of a certain. It is also used in the sense of any, to single out an individual as the representative of a class. It is also used to make a common noun of a proper noun. 11. In the Strouds Judicial Dictionary of Words and Phrases dealing with this letter 'a', it is said 'a' is sometimes read as 'the' 'a' may sometimes be read as 'some'. But, more frequently 'a' is the equivalent of 'any'. However, it is difficult to read 'a' as 'all'. 12. In the Concise Oxford Dictionary of Current English, dealing with the letter 'a' is stated that, 'a' sometimes called indefinite article, used with apparent plurals of number. 13. Section 13 of the General Clauses Act, 1897 deals with gender and number. It reads as under: - "13. Gender and number. - In all Central Acts and Regulations, unless there is anything repugnant in the subject or context. - (i) words importing the masculine gender shall be taken to include females; and (ii) words in the singul....
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....cordance with the aforesaid provisions. In this part of the section also, the words "a residential house" is again used. The said residential house necessarily has to include buildings or lands appurtenant thereto. It cannot be construed as one residential house. In this context, it is useful to refer- to Section 13 of the General Clauses Act, 1897, which reads as under: "13. Gender and number. - In all Central Acts and Regulations, unless there is anything repugnant in the subject or context - (i) words importing the masculine gender shall be taken to include females; and (ii) words in the singular shall include the plural, and vice versa." The context in which the expression "a residential house" is used in Section 54 makes it clear that, it was not the intention of the legislation to convey the meaning that it refers to a single residential house. If that was the intention, they would have used the word "one." As in the earlier part, the words used are buildings or lands which are plural in number and that is referred to as a residential house", the original asset. An asset newly acquired after the sale of the original asset also can be buildi....