TaxTMI 
TaxTMI 
2022 (3) TMI 1337
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.... The Ld. AO is not correct in charging interest under section 234A; 234B and 234C and the Id. CIT (Appeals) is not correct in confirming the levy/charge of interest. 3. The above grounds are mutually exclusive and without prejudice to one another. 4. The appellant craves leave to add to, amend, alter, modify, delete all or any of the above grounds appeal. 3. Brief facts of the case are that the assessee is an NRI, who had sold the immovable property along with her father to Sri T.Janardhana Rao on 19.02.2010 for a consideration of 79,19,500/-. An order u/s 201(1)/(1A) was passed in the case of Sri T.Janardhana Rao on 12.02.2013 for not making TDS u/s 195 of the Income Tax Act, 1961 (in short 'Act') on the payments made by him to the assessee. Subsequently, the assessee filed her income tax return for the A.Y.2010-11 on 17.05.2013 admitting sale consideration of Rs. 39,69,000/-, towards her share on account of the above transfer of property and claimed exemption u/s 54F for the entire long term capital gains shown at Rs. 17,89,099/- for reinvestment made by her in a house situated in United States of America. Notice u/s 148 was issued to the assessee on 30.03.20....
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....cing the scheme of exemption of long term capital gains is to develop and encourage the housing and infrastructure needs in India which is of paramount importance. Therefore, invariably, the reinvestment should be in a residential house located in India only and as per provisions of section 1(2) of the Act, the provisions of the Act extend to the whole of India, which means that any exemption or deduction cannot be allowed in respect of the amounts invested / reinvested outside India. The CBDT Circular No.1/2015 dated 21.01.2015 clearly mentioned that the benefit was intended for investment in residential house within India. The Ld.CIT(A) disallowed the exemption claimed u/s 54F by relying on numerous decisions of the Hon'ble Supreme Court. 5. Aggrieved by the order of the Ld.CIT(A), the assessee preferred an appeal before the Tribunal and at the outset, the Ld.AR has submitted that the issue is covered in favour of the assessee by the decision of the coordinate bench and also the following decisions of the Hon'ble High Courts : (a) Hon'ble High Court of Karnataka in the case of CIT Vs. Vinay Mishra in IT.A. No.75/2013 dt.31.08.2020 (b) Hon'ble High Court of De....
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....al asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or ^66[two years] after the date on which the transfer took place purchased, or has within a period of three years after that date 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,- (a) if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45 ; (b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under section 45: ^67[Provided that nothing contained in this sub-section shall apply where- (a) the assessee,- (i) owns more than one residential house, other than the new asset, on the date of transfer of ....
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.... the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme^72 which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit ; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset : Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then,- (i) the amount by which- (a) the amount of cap....
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.... the Karnataka High Court, which, in our opinion, dealt with similar controversy as is raised before us herein. The only difference which we find is that the purchase of the residential houses in the present case is at different address in the same city of Madurai. In D. AnandaBasappa case stated (supra), two flats in question were admitedly adjacent to each other and which were joined to become one residential house. In the case of KhoobchandM.Makhija (supra), two door nos are given viz., 623 and 729, but the complete addresses and even the name of the city is not clear in the facts narrated in the said Judgment. But in our considered opinion, the difference of location of the newly purchased residential house(s) will not alter the position for interpretation of the word 'a residential house' to the effect that it may include more than one or plural residential houses, as held by Karnataka High Court, with which we respectfully agree. The location of the newly purchased houses by the same assessee viz., HUF out of sale consideration received on the sale of original capital Asset or a residential house in the given circumstances of availability of such residential houses as....
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....e arguments advanced by the learned counsel for the Revenue. 23. Therefore, we are of the considered opinion that the present Appeal filed by the Assessee deserves to be allowed and the same is accordingly allowed and the questions of law framed above are answered in favour of the Assessee and as against the Revenue. No order as to costs.' (ii) CIT v. Vinay Mishra [2020] 121 taxmann.com 243/[2021] 276 Taxman 68, wherein a Division Bench of the High Court of Karnataka held as follows: "... 8. The relevant extract of CBDT Circular No. 1/2015 dated 21-1-2015 reads as under: 20.5 Applicability: These amendments take effect from 1st April, 2015 and will accordingly apply in relation to Assessment year 2015-16 and subsequent Assessment years. Thus, it is axiomatic that residential property, for which investment is made needs to be situated in India for the purpose of claiming exemption under section 54F from Assessment year 2015-16 only and not prior to that period. In the instant case, the investment in a residential house was made in USA prior to 1-4- 2015, whereas, the requirement of making an investment in a residential house,....