2022 (2) TMI 860

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....n of income for the assessment year 2012-13 on 01.06.2013 admitting total income of Rs..10,82,700/-. The case was selected for scrutiny and after following due process, the assessment was completed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 ["Act" in short] by assessing the income of the assessee at Rs..2,68,26,030/- consequent to the denial of benefit claimed under section 54F of the Act on two counts viz., (i) delay in completion of construction of residential units and (ii) deduction was claimed on multiple properties. On appeal, by following the decisions Hon'ble Jurisdictional High Court, the ld. CIT(A) has held that the assessee is eligible for the deduction under section 54F of the Act. 3. Aggrieved, the Revenue i....

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....4F, the construction should have been completed. This view was further elaborated by the Hon'ble High Court of Karnataka in the case of CIT vs. B.S. Shantha kumari (supra) as follows: Section 54F is a beneficial provision which promotes for construction of residential house. Such provision has to be construed liberally for achieving the purpose for which it is incorporated in the statute. The intention of the Legislature would clearly indicate that it was to encourage investments in the acquisition of a residential plot and completion of construction of a residential house in the plot so acquired A bare perusal of said provision does not even remotely suggest that it intends to convey that such construction should be compl....

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....ct, the ld.CIT(A) has observed and held as under: "4.2.1 With regard to the issue of the appellant claiming deduction on multiple properties, the appellant contends that the word 'a' appearing in the section 54F should not be construed in singular, but should be understood in plural. It is relevant here to refer to the decision of the Hon'ble High Court of Madras in the case of CIT Vs. V.R. Karpagam (supra) wherein it was declared as follows: The amendment to section 54F by the Finance (No. 2) Act, 2014 which will come into effect only from 01-04-2015, makes it very clear that the benefit of section 54F will be applicable to constructed, one residential house in India and that clarifies the situation in the pre....