TaxTMI 
TaxTMI 
TaxTMI 
2022 (3) TMI 1655
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....enhancing the assessment by making a of disallowance from Rs. 3,27,03,509/- against the disallowance of Rs. 14,90,260 made by the learned assessing officer in the assessment order. 4. That the learned Commissioner of Income-tax (Appeals) erred in law and on facts in enhancing the disallowance to Rs. 3,27,03,509 even though the learned assessing officer allowed the exemption after considering the documents available on record. 5. That the learned Commissioner of Income-tax (Appeals) erred in law and on facts in disallowing the entire claim of exemption u/s. 54F of the Act Rs. 3,27,03,509/- on the ground that the land is jointly held by appellant and her spouse. 6. That the learned Commissioner of Income-tax (Appeals) erred in law and on facts in disallowing the exemption u/s. 54F of the Act even though it is an undisputed fact that the appellant has invested the whole amount for construction of house. 7. Without prejudice to the above submissions, that the learned Commissioner of Income-tax (Appeals) ought to have allowed the exemption u/s. 54F of the Act in the hands of the appellant and her spouse equally. Each of the above grounds is without prej....
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....ty and re-construction of the residential house property. It is submitted before the Ld.CIT(A), that the assessee has not submitted the details of Sale Deed dated 29.01.2015. The assessee submitted that no Sale Deed executed on 29.01.2015 by or in favour of the assessee and that there has been a Gift of the property given out of natural love and affection by the assessee's father to the assessee and her husband under a document titled as Release Deed executed by the father on 03.12.2014. The assessee submits that by virtue of the Gift Deed termed as Release Deed dated 03.12.2014 the assessee's father gifted and renounced his undivided rights, interest in the property in favor of his daughter i.e., the assessee. 2.3 The Ld.CIT (A) relying on the decision of Hon'ble Supreme Court in case of Dilip Kumar & Company reported in 95 taxmann.com 327 held that the provision giving benefit to assessee needs to be interpreted strictly and in case there is an ambiguity in the provision, the same is subject to strict interpretation. He thus upheld that disallowance of the claim by the Ld.AO. Aggrieved by the order of Ld.CIT(A), the assessee is in appeal before this Tribunal. 3. The ....
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....agar property being BDA Site No. 839/21, 37th F Cross, 4th T Block, Jayanagar, Bangalore - 560 011. 7. We note that assessee claimed the cost of land of Jayanagar property and cost of construction incurred by her u/s. 54F being the subject matter of the present appeal. From the above, it is clear that assessee invested the capital gains earned from sale of her 1/3rd share in 34/1, Ekkarajapura property for the purpose of construction of residential house on the land jointly owned by her and her husband at BDA Site No. 839/21, 37th F Cross, 4th T Block, Jayanagar, Bangalore - 560 011. 8. The authorities below alleges that, deduction under section 54F will be available to assessee only if the assessee has within a period of one year before or two year after the date on which transfer took place or, has within a period of three years after the date of transfer constructed a residential house. The revenue contends that as the assessee acquired the property with respect to which the deduction under section 54 F was claimed was acquired on 10/02/2011, i.e., 4 years prior to the transfer of original asset and that the assessee constructed the residential house on the same prop....
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....dential house in India and if the amount of the cost of the residential house so purchased or constructed is equal to or less than the amount of capital gain. 15. It is a well settled principle of construction and interpretation of statutes that statutory provisions should, to the extent feasible, be interpreted and/or construed in accordance with plain meaning of the language used in those provision. 16. On a plain reading of Section 54W of the said Act, the transfer of a long term asset, which would include a residential house, would be chargeable to income tax as a capital gain, except in circumstances specified in the said section. 17. It is not necessary for this Court to go into the question of mode and method of computation of capital gain as there is no dispute in this regard, which requires adjudication in this appeal. 18. The question is, whether any part of the capital gain from transfer of the residential house is exempt from the capital gain tax and if so to what extent? 19. The conditions precedent for exemption of capital gain from being charged to income tax are: (i)The assessee should have purchased a residential house in India either one year bef....
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....one year prior to the transfer, which gave rise to the capital gain or may be in the alternative have expressly made the exemption in case of prior purchase, subject to purchase from any advance that might have been received for the transfer of the residential house which resulted in the capital gain. 23. At the cost of repetition, it reiterated that exemption of capital gain from being charged to income tax as income of the previous year is attracted when another residential house has been purchased within a period of one year before or two years after the date of transfer or has been constructed within a period of three years after the date of transfer of the residential house. It is not in dispute that the new residential house has been constructed within the time stipulated in Section 54(1) of the said Act. It is not a requisite of Section 54 that construction could not have commenced prior to the date of transfer of the asset resulting in capital gain. If the amount of capital gain is greater than the cost of the new house, the difference between the amount of capital gain and the cost of the new asset is to be charged under Section 45 as the income of the previous year. If....
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.... doubt is resolved by interpreting the applicability of exemption clause strictly, the Court may construe the notification by giving full play bestowing wider and liberal construction. The ratio of Parle Exports Case (supra) deduced as follows: "Do not extend or widen the ambit at stage of applicability. But once that hurdle is crossed, construe it liberally. 47. We do not find any strong and compelling reasons to differ, taking a contra view, from this. We respectfully record our concurrence to this view which has been subsequently, elaborated by the Constitution Bench in Hari Chand Case(supra). 14. Hon'ble Court thus summarised their observation as under:- "52. To sum up, we answer the reference holding as under: 1) Exemption notification should be interpreted strictly; the burden of Proving applicability would be on the assessee to show that his case comes within the parameters of the exemption clause or exemption notification. (2) When there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity cannot be cannot be claimed by the subject/assessee and it must be interpreted in favour of the revenue. (3) The ratio in....