TaxTMI 
TaxTMI 
2021 (9) TMI 994
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....x effect relating to each Ground of appeal 1 The Ld. CIT (A) erred on facts and in law in restricting exemption u/s 54 to Rs. 24,25,513/- against 'Rs. 62.58,503/-claimed by the appellant in respect of newly acquired residential house while computing Long Term Capital Gain Rs. 7,66,598/- being Tax |20% of Rs. 38,32,990/- Plus Rs. 22,998/- being Education Cess ]3% of tax amount) Total Rs. 7,89,596/- 2 The Ld. CIT (A) erred on facts and in law in treating one residential house to be as three independent residential houses for the purpose of computing exemption u/s 54, Total tax effect Rs. 7,89,596/- 3. The fact in brief is that return of income declaring total income of Rs. 11,12,090/- was filed ....
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.... as against the exemption claimed by the assessee against three units. Therefore, claim of exemption to the extent of Rs. 38,32,990/- was disallowed and added to the income of the assessee. 4. Aggrieved assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee holding that as per the amendment in Finance Act, 2014 applicable w.e.f. assessment year 2015-16 wherein legislature has clarified that exemption is available only for investment in one house. 5. During the course of appellate proceedings before us, the ld. counsel has submitted paper booked comprising copies of documents and details of information furnished before the Assessing Officer and ld. CIT(A). The ld. has counsel referred l....
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....ted 17th June, 2014 on 18th July, 2014 the builder has issued allotment letter for single combined residential flat to the assessee. With the support of documentary evidences, the assessee has demonstrated that all the three units were not independent as there was single entry and exit and stated that it was one residential house. The assessee has also enclosed copy of allotment letter dated 17th July, 2014 in the paper book wherein the developer has stated that tailor made combined flats on the same floor was specifically constructed for the allottee and there shall be single entry and exit for the allottee and maintenance as per the society rules would be applicable in singular manner on the built up area of 3045 square feet. We have also....
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....let out the first floor having an independent entry so that his income is augmented. It is quite common to find such arrangements, particularly post-retirement. One may build a house consisting of four bedrooms (all in the same or different floors) in such a manner that an. independent residential unit consisting of two or three bedrooms may be carved out with an independent entrance so that it can be let out. He may even arrange for his children and family to stay there, so that they are nearby, an arrangement which can be mutually supportive. He way construct his residence in such a manner that in case of a future need he may be able to dispose of a part thereof as an independent house. There may be several such considerations for a perso....
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....IT (2020) 114 taxman.com 508 (Ahmedabad-Trib). The relevant part of the decision of the ITAT Ahmedabad is reproduced as under:- "Section 54F of the Income-tax Act, 1961 - Capital gains - Exemption of, in case of investment in residential house (Purchase of two adjoining flats) - Assessment year 2015-2016 - During relevant year, assessee claimed exemption under section 54F on long-term capital gain invested in two bungalows which were adjacent to each other and used as one residential unit - Assessing Officer disallowed same on ground that assessee could have claimed exemption under section 54F with respect to investment in one bungalow only - However, under provisions of section 54F, no definition/clarification about area of reside....