TaxTMI 
TaxTMI 
2026 (4) TMI 391
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.... receipt of any fresh date of hearing and any fresh communication from CIT(A), the written submissions were also sent through ITBA on 30.08.19 vide Ack. No. 30081911525702, which have not been considered in the impugned CIT(A) order. 2. That under the facts and circumstances, the Ld. CIT(A) erred in law in not deciding the appeal on merits substantively even while passing ex-parte asstt. order. 3. That under the facts and circumstances, the Ld. A.O. has exceeded his jurisdiction by not strictly following and working within the four corners of directions and findings in order u/s.263, hence the impugned order is not sustainable in law being without jurisdiction and illegal. 4. That under the facts and circumstances, the Ld. A.O. committed serious legal and factual errors in allowing deduction u/s.54 only for Rs. 33,61,165 against correctly claimed at Rs. 64,23,843, thus short by Rs. 30,62,678. 4.1 That in view of the submissions, evidences furnished and the settled legal position as per case laws, the deduction u/s.54 should have been allowed for Rs. 64,23,843." 3. The Ld. Counsel for the assessee at the outset submitted that in this appeal cla....
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....ng that: it refers to a single residential house, if, that was the intention, they would have used the word "one." As in the earlier part, the words used are buildings or lands which are plural in number and that: is referred to as "a residential house", the original asset. An asset newly acquired after the sale of the original asset also can be buildings or lands appurtenant thereto, which also should be "a residential house." Therefore, the letter "a" in the context it is used should not be construed as meaning "singular." But, being an indefinite article, the said expression should be read in consonance with the other words „buildings" and lands" and, therefore, the singular a residential house" also permits use of plural by virtue of Section 13(2) of the General Clauses Act. CIT V. D. Ananda Bassappa (2009) 223 (kar) 186: (2009) 20 DTR (Kar) 266 followed." 7. Upon careful consideration, we find that the contentions of the assessee that the issue is covered in favour of the assessee are correct. 7.1 Ld. Departmental Representative could not controvert the above and no contrary decision was cited before us. 8. Accordingly, we do not find any infir....
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....t High Courts including this court and with a view to give definite meaning to the expression 'a residential house', the provisions of Section 54(1) were amended with an object to restrict the plurality to mean singularity by substituting the word a residential house' with the word 'one residential house'. The aforesaid amendment came into force with effect from 01.04.2015. The relevant extracts of Explanatory note to provisions of Finance Act No.2/2014 reads as under: 20.3 Certain courts had interpreted that the exemption is also available if investment is made in more than one residential house. The benefit was intended for investment in one residential house within India. Accordingly, sub-Section (1) of Section 54 of the Income-Tax Act has been amended to provide that the rollover relief under the said Section is available if the investment is made in one residential house situated in India. 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 the aforesaid amendment was specifically applie....
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....of the Act in respect of investment made in more than one property for assessment year under consideration. 8. Further we observed that in various decisions it was held that investment made beyond due date for filing ITR even though not deposited into capital gains scheme as referred to in the submissions of the assessee is eligible for exemption u/s.54 of the Act. Thus, respectfully following the said decisions the AO is directed to consider the investments made by the assessee even beyond due date of filing ITR as specified in section 54(2) while allowing in the exemption u/s.54 of the Act. 9. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 27.02.2026. ============= Document 1 BEFORE THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH 'SMC' NEW DELHI) MRIDULA AGARWAL ITA No.8157/DEL/2019 A.Y.2012-13 BRIEF CONTENTIONS (IN BULLET POINTS) 15.01.26 "SMC' Bench G.No.4 Disallowance of claim of exemption U/s.54 to the extent of Rs.30,62.678/- Brief Facts - Assessee was having 50% share in residential house at 1" Floor, H.No.56, Mandakini Enclave, G.K. New Delhi alongwith 50% of his wife. 1 On 19.10.11 (A.Y.12-13), it....
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....'s husband) - on same property :- Para-6.3 ..... we are of the considered view that the appellant/assessee is entitiled to claim the deduction on both residential units U/s.54 of the act ....... Nilufer Saved vs ITO [2021] 126 taxmann.com 173 (Mumbai - Trib.) (Now filed) Prior to 1-4-2015 word 'residential house' as occurring in section 54 can include more than one or plural residential house Para - 4.5 "Keeping in view the rules of judicial precedents, the aforesaid view of Hon'ble High Courts shall take precedent over the decision of Tribunal (SB) in Sushila M. Jhaveri (supra) as relied upon by Ld. CIT(A)." Mrs. Thajunnissa Begum vs ITO [2023] 152 taxmann.com 191 (Chennai - Trib.) INCOME TAX : Before amendment of Sec.54(1) by Finance (No. 2) Act, 2014 with effect from 1-4-2015, in a residence house, if multiple units were there, still assessee could claim benefit of exemption U/s.54. CIT Vs Sved Ali Adil [2013] 33 taxmann.com 212 (Andhra Pradesh) IT : Exemption U/s.54 cannot be denied, where residential house property purchased by assessee consists of several independent units. Disapproved the decision of A.O. quoted in Asstt. Order as under: Para -1....
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....Income-tax Act, 1961 - Capital gains - Profit on sale of property used for residence (One residential house) - Asstt. Yr 15-16 - Assessee filed return of income claiming deduction U/s.54 with regard to purchase of two flats from capital gain derived on sale of property - In view of amendment to Sec.54 with effect from Asstt. Yr. 15-16, A.O. allowed exemption with regard to one flat of higher value and disallowed exemption with regards to other flat and added it to capital gain derived by assessee - On appeal, Commissioner (Appeals) confirmed action of A.O. - It was noted that amendment in Sec.54 by substituting words 'one residential house' in lieu of 'a residential house' was made by Parliament by Finance Act, 2014, with effect from 1-4-2015 and applicable from Asstt. Yr 15-16 - Assessee had purchased two flats in Asstt. Yr 14-15 when amendment was not in force - Whether therefore, assessee would be entitled to deduction U/s.54 in respect of both flats and based on this factual position, Assessing Officer was to be directed to grant deduction U/s.54 in respect of second flat - Held, yes [Paras 12 and 13] [In favour of assessee]. TWO - Investment beyond due date of filing ITR al....