9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (5) TMI 689 - AT - Income TaxLTCG - deduction u/s 54F - as pursuant to the JDA, assessee had received multiple residential units and not a single residential unit - Scope of amendment - AO disallowed the claim of deduction in respect of 14 apartment units and allowed the benefit of investment only on one apartment unit by interpreting as a residential house - HELD THAT - The provisions of section 54F of the Act was amended vide Finance (No.2) Act, 2014 with effect from 01.04.2015 and has withdrawn deduction for more than one residential unit with effect from 01.04.2015 by replacing word a with one . In this context, it is relevant to mention that the Hon'ble jurisdictional High Court, prior to the amendment, in the case of CIT v. Smt. K. G. Rukminiamma 2010 (8) TMI 482 - KARNATAKA HIGH COURT had held that residential unit house , used in section 54 makes it clear that it was not the intention of the legislature to convey the meaning that it refers to a single residential house. It was held by the Hon'ble High Court that if that was the intention, they would have used the word one .Therefore, the letter a in the context it is used should not be construed as meaning single . It was concluded by the Hon'ble High Court that, 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 The Hon ble Madras High Court in the case of CIT Vs. Smt. V. R. Karpagam 2014 (8) TMI 899 - MADRAS HIGH COURT had categorically held that the principles mentioned in section 54 of the Act is to be applied paripassu to section 54F of the Act. In view of the aforesaid judicial pronouncement, we hold that assessee is entitled to the benefit of section 54F of the Act in respect of all the units received by the assessee pursuant to the JDA, since the relevant Assessment year is prior to the amendment to section 54F of the Act (i.e., 01.04.2015). It is ordered accordingly.
Issues Involved:
The judgment involves the interpretation of deduction under section 54F of the Income Tax Act, 1961 for multiple residential units received by the assessee under a Joint Development Agreement (JDA) and the impact of relevant judicial pronouncements on the issue. Issue 1: Denial of Deduction under Section 54F: The appeal by the Revenue challenges the order of CIT(A) directing the grant of deduction under section 54F of the Act for 15 apartment units received by the assessee under a JDA with NCC for the Assessment Year 2008-09. The AO disallowed the deduction for 14 apartment units, interpreting the provision to allow benefit on only one residential unit. The CIT(A) allowed the appeal based on various judgments supporting the assessee's claim. Judgment Details for Issue 1: The Tribunal considered the contention that prior to the amendment to section 54/54F of the Act in 2015, the assessee's claim was supported by judicial pronouncements. The Hon'ble jurisdictional High Court had interpreted "a residential house" in section 54 to include plural units, not limited to a single house. The Tribunal noted that the subsequent amendment in 2015 restricted the benefit to one residential house, but it was held to be prospective. Citing relevant case laws, the Tribunal upheld the assessee's entitlement to deduction under section 54F for all units received under the JDA, as the relevant Assessment Year predated the amendment. Key Legal Interpretations: - The term "a residential house" was construed to include plural units based on judicial precedents. - The subsequent amendment in 2015 aimed to restrict the benefit to one house prospectively. - The principle underlying the decisions of High Courts was considered binding as precedent. - The Madras High Court affirmed the application of principles from section 54 to section 54F of the Act. Conclusion: The Tribunal dismissed the Revenue's appeal, affirming the assessee's entitlement to deduction under section 54F for all units received under the JDA for the Assessment Year 2008-09. The judgment aligned with the interpretation of the term "a residential house" as per relevant judicial pronouncements prior to the 2015 amendment. This summary provides a detailed breakdown of the legal judgment, highlighting the issues involved and the comprehensive details of the Tribunal's decision on the denial of deduction under section 54F of the Income Tax Act.
|
