TaxTMI 
TaxTMI 
2026 (6) TMI 221
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....ties below are that the assessee is an individual, has filed return of income for AY 2013-14 on 18th July, 2013 declaring a total income of Rs. 6,38,22,730/-. In this case information was received from ITO (I&CI)-3, New Delhi that during financial year 2012-13 and relevant to AY 2013-14, the assessee has purchased an immovable property bearing no. C-5, Sector-47, Noida for consideration of Rs. 3,60,00,000/- on 24.01.2013. It was further mentioned that the assessee got Rs. 12,67,00,000/- (one third share) from the sale proceeds of the ancestral property No. E-8, Defence Colony, New Delhi which was sold for Rs. 37,01,00,000/- The sale proceeds of this ancestral property was invested by the assessee for purchase of two properties bearing no. C-5, Sector 47, Noida for Rs. 4,10,65,000/- and in another property as Wishtown Klassic, Jaypee Greens, Noida for Rs. 91,48,775/-. 3. Accordingly, the assessment was reopened u/s 147 of the Income Tax Act by following the due procedure of law and notice u/s 148 of the Act was issued on 31st March, 2021 and in reply to the said notice, the assessee filed return of income on 31.12.2021 declaring total income at Rs. 6,38,22,728/-. Since the return....
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....nt brought in the Finance Act 2014 w.e.f. 01.04.2015 assessee is eligible for claim of exemption u/s 54 in respect of investment in more than one residential houses. The amendment brought in the Finance Act, 2014 w.e.f. 01.04.2015 will not be applicable in AY 2013-14." 7. We have heard the ld. DR as well as ld. AR. 8. The ld. AR at the very outset, pointed out that there is a delay of 4 months and 9 days in filing the appeal before the Tribunal and has sought condonation of delay by moving an application stating that in the given facts and circumstances the delay need to be condoned in the interest of justice and the appeal be considered on merits. The ld. DR has opposed the condonation of delay on the ground that the sufficient cause for condonation of delay has not been made out. 9. We have heard the rival submissions and the contents if delay condonation application are extracted below: "1. That the appellant is a senior citizen, aged 75 years, and during the relevant period was suffering from age-related health complications, which significantly restricted her ability to take timely steps for filing the appeal. 2. That the order against which the pres....
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....ible in more than one house of the Long Term Capital Gain from the sale of immovable property. The ld. AR has relied various case laws discussed as under: (i). In ITA No. 1237/2011 in the case of CIT v. Gita Duggal of the Hon'ble High Court of Delhi order dated 21.02.2013, where in it was held that the Tribunal expressed the view that the words "a residential house" appearing in section 54/54F of the Act cannot be construed to mean a single residential house since under section 13(2) of the General Clauses Act, a singular includes plural. Further a finding recorded in para 8 onwards is extracted as under: "8. It is the correctness of the above view that is questioned by the revenue and it is contended that the interpretation placed by the Tribunal gives rise to a substantial question of law. The assessee strongly relies upon the judgment of the Karnataka High Court (supra) which, it is stated, has become final, the special leave petition filed by the revenue against the said decision having been dismissed by the Supreme Court as reported in the annual digest of Taxman publication. The judgment of the Karnataka High Court supports the contention of the assessee. An ident....
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....t the residential house should be built in a particular manner, it seems to us that the income tax authorities cannot insist upon that requirement. A person may construct a house according to his plans and requirements. Most of the houses are constructed according to the needs and requirements and even compulsions. For instance, a person may construct a residential house in such a manner that he may use the ground floor for his own residence and let out the first floor having an independent entry so that his income is augmented. It is quite common to find such arrangements, particularly postretirement. One may build a house consisting of four bedrooms (all in the same or different floors) in such a manner that an independent residential unit consisting of two or three bedrooms may be carved out with an independent entrance so that it can be let out, He may even arrange for his children and family to stay there, so that they are nearby, an arrangement which can be mutually supportive. He may construct his residence in such a manner that in case of a future need he may be able to dispose of a part thereof as an independent house. There may be several such considerations for a person ....
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....l 2015. 24. In view of the foregoing analysis, the Appeal is allowed. The substantial question of law formulated by this Court is answered in favour of the Assessee and against the Revenue. In the result, the order passed by the Assessing Officer and the ITAT, to the extent of deprivation of benefit of exemption under Section 54(1) of the Act is hereby quashed and set aside and the Assessee is held entitled to the benefit of exemption under provisions of Section 54(1) of the Act against the entire capital gains of Rs. 1,08,30,625/- arising out of sale of his flat in Mumbai, on account of utilization thereof towards purchase of seven row houses in Pune." (iii). The ld. DR while relying on the order of the lower authorities would submit that the ld. CIT(A) has rightly decided the case by rejecting the claim of LTCG as exemption u/s 54F with respect to second property purchased by the assessee. It is further submitted that the amendment in section 54F by Finance Act 2014 w.e.f. 01.04.2015 will be applicable retrospectively as it pertains to the interpretation of expression 'that a residential house', which stand substituted by word "constructed one residential in India". ....