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TMI Blog2010 (5) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... erties out of the long-term capital gain arising on account of sale of commercial property." 2. As per the assessment order, the assessee, during the year, sold two commercial properties/capital assets located at 502, Ocean Plaza, Sector 18, Noida for Rs. 45 lakhs and at 104, Ocean Plaza, Sector 18, Noida for Rs.33.16 lakhs. The assessee claimed deduction under section 54F of the Income-tax Act, for purchasing two residential units, i.e., IC-1 and IC-2 in Group Housing Complex, Purva Parkridge, Bangalore. 3. The Assessing Officer observed that the property at IC-1 was purchased by the assessee on October 14, 2004 ; that it was an independent unit consisting of one bedroom, dining room, hall, kitchen, toilet and servant room; that the prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... floor of the house consisted of one bedroom, dining room, hall, kitchen, toilet, servant room and an internal staircase for entering to the first floor of the house ; that the first floor of the case consisted of two bedrooms, study room, lounge and two bathrooms ; that even if the two floors were considered to be separate units, as per ITO v. Ms. Sushila M. Jhaveri [2007] 292 ITR (AT) 1/[2007] 14 SOT 394/107 ITD 327 (Mum.) [SB], if more than one adjacent unit are purchased and converted into one house for the purpose of residence, by having common passage, common kitchen, etc., it would be a case of investment in one residential house. 5. The Assessing Officer, however, did not agree with the contentions raised by the assessee. It was he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the learned Departmental representative has contended that the learned Commissioner of Income-tax (Appeals) has erred in allowing exemption to the assessee under section 54F of the Act ; that while doing so, the learned Commissioner of Income-tax (Appeals) has failed to appreciate that the assessee had purchased two distinct residential properties out of the long-term capital gains arising on account of sale of commercial properties ; that the case law relied on by the learned Commissioner of Income-tax (Appeals) is not applicable to the facts of the present case ; and that as such, the order of the learned Commissioner of Income-tax (Appeals) be reversed and that passed by the Assessing Officer revived. 9. Learned counsel for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etters dated July 24, 2007, August 24, 2007 and July 9, 2007. These letters have been observed by the learned Commissioner of Income-tax (Appeals) to be forming a part of the assessment record. As per the grounds of appeal raised before the learned Commissioner of Income-tax (Appeals), the assessee had, during the assessment proceedings, verbally requested the Assessing Officer to get the house physically inspected by his counter part in Bangalore. This the Assessing Officer did not do. It cannot be gainsaid that the Assessing Officer is amply empowered to get such an inspection done. 12. Apropos the Assessing Officer's observation that no approval was shown to have been obtained by the assessee, nor any payment of statutory dues had been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ptember 10, 2009, entered into between the assessee and Mrs. Rupa Bhudia, which, inter alia, gave description of the premises leased out, as follows : "Schedule premises All that piece and parcel of property referred to as Vills IC in 'Purave Parkridge' located, on Ghoshala Road, Garudachar Palya, Mahadevpura, Bangalore-560 048. Vills IC is a single residential unit on the ground and first floors, having one bedroom kitchen, dining room and drawing room and one bathroom on the ground floor and two bedrooms, study, lobby and two bathrooms on the first floor. It is bounded : East by House No. 2 West by Compound wall North by Compound wall South by Purva Parkridge Road." 15. It was after considering all these factors that the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of investment of capital gains made in acquisition of land appurtenant to a building or an investment in land on which the building is to be constructed. Reliance by the learned Commissioner of Income-tax (Appeals) on this decision is by holding and, rightly so, that the assessee's case was still better, since the assessee had purchased the two floors of the same building within a short span of two days. 17. In view of the above, finding no error whatsoever in the order passed by the learned Commissioner of Income-tax (Appeals), the same is hereby confirmed. The grievance sought to be raised by the Department by way of the ground of appeal taken is found to be shorn of merit and is rejected as such. 18. In the result, the appeal file ..... X X X X Extracts X X X X X X X X Extracts X X X X
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