2025 (2) TMI 1819

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.... the assessee is an individual and engaged in the business of surgical implants under the name and style of M/s. Acromed Surgicals. The assessee filed return of income for the assessment year 2011-2012 on 27th September, 2011 declaring total income of Rs. 2,04,480. Against the said return of income, the assessment was completed by the Assessing Officer, i.e., the Income Tax Officer, Ward-2(3), Thrissur ("the AO" hereinafter) vide order u/s. 143(3) of the Act dated 3rd March, 2014 assessing the total income at Rs. 20,94,140. 3. While doing so, the AO had denied exemption u/s. 54F of the Income-tax Act, 1961 ("the Act" hereinafter) in respect of capital gain of Rs. 18,89,662 on the ground that the assessee constructed multiple residential ....

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....ed on behalf of the assessee despite due service of notice. Therefore, I proceed to dispose of the appeal on merits. 5. The learned Sr.DR placed reliance on the decision of the co-ordinate bench of the Tribunal in the case of M.S. Amaresan v. ACIT (2021) 186 ITD 715 (Chennai-Trib.) and submits that the assessee is not eligible for exemption u/s. 54F as the assessee has constructed multiple residential units. 6. I have heard the learned Senior DR and perused the material available on record. The solitary issue in the present appeal that arises for my consideration is whether the CIT(A) is justified in denying exemption u/s. 54F of the Act. Undisputedly, the facts of the case are that the capital gains arising on sale of commercial buil....

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....mendment, viz., from 01-4-2015, the benefit of Section 54F will be applicable to one residential house in India. Prior to the said amendment, it is clear that a residential house would include multiple residential units as in the present case where the assessee has got five residential flats. We may also mention here that all the Authorities below have clearly understood that the agreement signed by the assessee with M/s. Mount Housing infrastructure Ltd. is that the assessee will receive 43.75% of the build up area after development, which is construed as one block which may be one or more flats.. In that view of the matter what was before the Assessing Office is only equivalent to 56.25% of land transferred, equivalent to 43.75% of built ....