TaxTMI 
TaxTMI 
2021 (12) TMI 800
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....re common in other appeal, are as under: "1. Whether in the facts and circumstances, the order of the Id. CIT(A) in directing the Assessing Officer to allow the claim of the assessee u/s 54F of the Income Tax Act, is not perverse, illegal and likely to be set aside. 2. Whether in the facts and circumstances, the order of the Id. CIT(A) is justified in directing the Assessing Officer to consider all the residential flats received as consideration as part of reinvestment for the purpose of section 54F, when the assessee received multiple flats located on different floors separated by different blocks of gated community/apartment complex. 3. Whether in the facts and circumstances, the order of the Id. CIT(A) is justified in directing the Assessing Officer to consider all the residential flats received as consideration relying on the decision of Hon'ble AP High Court in the case of Sri Syed Ali Adil by not considering the facts of the case are distinguishable and not applicable to the flats of the present case. 4. Whether in the facts and circumstance, the Id. CIT(A) is justified in not considering the intention of the legislature while amending ....
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....f the IT Act the hon'ble high court held that the assessee was eligible for exemption in respect of a residential house which consists of multiple units." 6. The CIT(A) after considering the elaborate submissions as well as case law cited by the assessee, which were extracted in his order at pages 11 to 20 held that it is clear that even if the investment is made in multiple residential houses/units, the appellant will be entitled for exemption u/s 54F. Further, he held that it is also important to note that an amendment u/s. 54F took place vide Finance Act, 2014, wherein, "a residential house" was substituted with "one residential house in India w.e.f. 01.04.2015. The said amendment very clearly states that prior to 01.04.2015, the section did not restrict the investment to only one residential house. Therefore, from the above decisions and subsequent amendment, the reinvestment quantum for eligibility u/s. 54F cannot be limited to one residential house. Therefore, he directed the AO to consider all the residential flats received as consideration as part of re-investment for the purpose of section 54F. 7. Aggrieved by the order of CIT(A), the revenue is in appeal before ....
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.... 39810 B2 C+S+5 Floor 7962 39810 B3 C+S+5 Floor 7962 39810 B4 C+S+5 Floor 7962 39810 B5 S+5 Floor 6194 30970 B6 C+S+5 Floor 6194 30970 B7 C+S+5 Floor 12189 60945 B8 C+S+5 Floor 12170 60850 B9 C+S+5 Floor 15099 75494 B10 S+5 Floor 5589 27945 B11/A S+5 Floor 17012 86935 B11/B S+5 Floor 2954 14770 Total built up area in flats = 547120 SFT Villa Area Statement Villas Nos Built up area Total area East 20 3135 62700 West 20 3175 63500 Total Area in Villas (SFT) = 126200 Open Plot Area Statement Plot No Land Area Open 1 625 Sq.Yds Open 2 625 Sq.Yds Open 3 625 Sq.Yds Open 4 625 Sq.Yds 10.3 Allotment of the apartment units between first party and second party: Area Distribution between owners and developers Owners Area Development Area Block Description Area in SFT Block Area in SFT Description B2 Full Block 39810 B1 39810 Full Block B3 Full Block 39810 B4 31935 Partial B....
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....construct flats or Villas, increase or decrease the area, as per the will of the Second. party only, without disturbing the area earmarked for Apartments, and that the First Party shall not have any objection or right on it. TYPIC OF CONSTRUCTION FIRST PARTY SECOND PARTY (OWNERS) (,DEVELOPERS) Apartment/Flats 300000 SFT 236905 SFT 536905 SFT Independent houses NIL 100000 SFT 100000 SFT APPROX. AREA OF CONSTRUCTION FOR FLATS IN TOTAL: 5,36,905 SFT APPROX. AREA OF CONSTRUCTION FOR INDEPENDENT HOUSES: 1,00,000 SFT (40 Villas) ALL THE" AREAS CONSJDEREDIMENTIONED herein are as per Saleable area in SFT only which includes total constructed area including balconies, sit out, staircases, lift rooms, Security rooms, games room, if any; electrical meter room, Economic Weaker Section, Low Income Group housing, pump room, generator rooms if any, common areas, circulation areas but excludes car parking area. The construction areas and the layout may be altered by the SECOND PARTY to meet the marketability demands, at any stage or as per stipulated rules of concerned authorities. That the First Party shall ret....
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.... advertise / market in any form of media as deemed fit and the FIRST PARTY shall not have any objection towards it as long as it is done on the name of the SECOND PARTY. " 10.7 The ld. CIT(A) has relied on the judgement of Hon'ble Delhi High Court in the case of CIT Vs. Geeta Dugal (ITA No. 1237/2011 dated 21/02/2013) and Hon'ble AP, Karnataka High Courts judgements as well as the decision of ITAT, Hyderabad. In all these judgements, the exemption claimed was in respect of multiple units on different floor/floors in a Block/Tower. But, in these cases, it is not clear as to whether one assessee has been allotted house/houses in a Block/Tower. We have gone through the allotment of apartment, which has been enumerated in para 10.3 cited supra, it is clear that some of the Blocks have been allotted fully to the assessee/assessees and some of the Blocks are partially allotted amongst the assessees and developers. In this regard, the AR of the assessee has not submitted any documents or any allotment letter for ascertaining the number of flats allotted to the assessee/assessees by the developers which is root for determining the deduction u/s 54F of the IT Act. The CIT(A)'s deci....