TaxTMI 
TaxTMI 
2021 (9) TMI 696
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....2.2014. 2. There is a delay of seven days for filing of appeal and in support of its contention on behalf of the assessee an application along with affidavit have been filed and reasons have been mentioned therein. We are satisfied with the reason and condone the delay and proceed with the appeal. 3. Assessee has taken solely ground that Ld. CIT(A) has erred in law and on facts disallowance exemption u/s. 54 of the Act of Rs. 44,05,610/-. 4. In this case, assessee invested capital gain in two adjacent flats and claim the benefit of capital gain but lower authorities did not allow the claim of the assessee by holding that legislature has allowed investment in one residential house and Ld. A.O. did not allow deduction u/s. 54 of the ....
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....efore or 32[two years] after the date on which the transfer took place purchased, or has within a period of three years after that date 32a[constructed, a residential house] (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,-- 8.1 A plain reading of the above provision reveals that, subject to the conditions as specified under section 54F of the Act, the assessee can claim exemption for the investment made in a residential house. The question arises whether 'a residential house' reads as one residential house. To resolve the controversy, we note that different courts have taken different views. Some of th....
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....ct. [Para 10] 8.2 We further find that there was an amendment under the provisions of section 54F of the Act wherein the word 'a residential house' was replaced with 'one residential house'. Such amendment was brought by the Finance Act 2014 which is effective from 1 April 2015 corresponding to assessment year 2015-16. This fact can be verified from the explanatory memorandum to amendment in Finance Act 2014 which reads as under: The existing provisions contained in sub-section (1) of section 54F, inter alia, provide that where capital gains arises from transfer of a long-term capital asset, not being a residential house, and the assessee within a period of one year before or two years after the date of tra....
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....he amendment brought under the provisions of section 54F of the Act. Accordingly, we direct the AO to allow the assessee the benefit of exemption under section 54F of the Act for the investment made in both the properties. Hence the ground of appeal of the assessee is allowed. 9. Ld. A.R. Ms. Amrin Pathan also cited a judgment of Andhra Pradesh High Court in the matter of CIT vs. Syed Ali Adil and argued that her case is squarely covered by the judgment and relevant portion of the Andhra Pradesh High Court is reproduced hereunder: 10. We see no force in the said contention. As held in D. Ananda Basappa's case (supra) by the Karnataka High Court, the expression "a residential house" in section 54 (1) of the Act has to be unde....
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.... be an impediment to grant relief under section 54 even if such independent units were on different floors. The decision in Ms.Suseela M.Jhaveri's case (supra) holding that only one residential house should be given the relief under section 54 does not appear to be correct and we disapprove of it. We agree with the interpretation placed on section 54 by the High Court of Karnataka in D. Ananda Basappa's case (supra) and Smt. K.G. Rukminiamma's case (supra) and the decisions of the Mumbai, Chennai and Delhi Benches of the Tribunal in K.G. Vyas (supra), P.C. Ramakrishna, HUF (supra) and Prakash Bhutani (supra). We therefore hold that the CIT (Appeals) was correct in setting aside the order of the Assessing Officer and the Tribunal....