2014 (8) TMI 1052 - SCH - Income Tax

Deduction u/s 54/54F disallowed - whether house/units in the first and second floors were separate and independent residential units having separate entrances and cannot be considered as one unit to enable the assessee to claim the deduction - HC 2013 (3) TMI 101 - DELHI HIGH COURT allowed the claim - Held that - There is nothing in Sections 54/54F which require the residential house to be constructed in a particular manner. The only requirement is that it should be for the residential use and not for commercial use. If there is nothing in the section which requires that the residential house should be built in a particular manner, income tax authorities cannot insist upon that requirement. A person may construct a house according to his plans and requirements.Unable to see how or why the physical structuring of the new residential house,whether it is lateral or vertical, should come in the way of considering the building as a residential house. The residential house consists of several independent units can be permitted to act as an impediment to the allowance of the deduction under Section 54/54F - HC took the correct view. - Decided in favour of assessee.

Summary

The Supreme Court dismissed the Special Leave Petition, with delay condoned. The citation is 2014 (8) TMI 1052 - SC Order. The Delhi High Court citation is 2013 (3) TMI 101. Judges were Madan B. Lokur and C. Nagappan. Petitioner represented by Ranjit Kumar, SG, and others.