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TMI Blog2014 (4) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... lding – thus, it is required to be remitted back to the AO to conduct necessary enquiry to find out the exact nature of construction. A residential house does not mean a single residential house - Even where the assessee constructs or receives a number of flats adjacent to each other or in different floors of the same building then also the assessee would be entitled for exemption u/s 54F of the Act – Relying upon In this context, we rely on a decision of the Hon’ble Jurisdictional High Court in case of CIT vs. Syed Ali Adil [2013 (6) TMI 278 - ANDHRA PRADESH HIGH COURT] - the matter is remitted to the file of the AO for fresh adjudication - Decided in favour of Assessee. - ITA No. 67/Hyd/2013 - - - Dated:- 2-4-2014 - Shri B. Rama ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd building approval plan and other information with regard to the newly acquired property against which the assessee claimed exemption u/s 54F of the Act. In response to the query made by the Assessing Officer, the assessee explained that she along with her sister were owners of a plot of land having 50% share each. They decided to construction of residential building over the said plot of land consisting stilt plus 5 floors. So far as the cost of construction of building is concerned, the assessee submitted a report from a registered valuer who valued the cost of construction of the building at Rs.2,16,50,000/- 6. It was contended by the assessee that till 31/10/2007, the assessee on an estimate has spent an amount of Rs.1,09,78,307 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the CIT (A). It appears from the order of the CIT (A) since even after affording several opportunities given to the assessee, none appeared on behalf of the assessee, he proceeded to decide the appeal ex parte on the basis of the materials available before him. The CIT (A) ultimately disposed of the appeal by confirming the view of the Assessing Officer with following findings:- 5.2 I have considered carefully the facts and evidence. It is a matter of record that the Inspector of the Assessing Officer visited the building and found that the property in question was actually a commercial building housing a school by the name Sanskruti . This very fact clearly indicates that the appellant has deliberately falsified the information and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that even the Inspector of Income-tax while submitting his report on 23/12/2009 has categorically stated that the school has started functioning six months back which makes it clear that no school was functioning in the said residential building during the relevant assessment year. It was therefore contended by the learned AR that denial of exemption u/s 54F on the conclusion that it is not a residential building is without any basis. 9. The learned DR, on the other hand, strongly relying upon the orders of the revenue authorities submitted that the enquiry conducted by the Assessing Officer through the Inspector of Income-tax clearly revealed the fact that the constructed building is not a residential house as envisaged u/s 54F of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, the primary fact which is required to be examined is whether the building has been constructed for residential use or not. This can be verified from the approved plan and architectural design of the building. However, the plan of the constructed building has not been brought on record either before the revenue authorities or before us. Therefore, it is difficult to arrive at a conclusive finding with regard to the nature of the building. In the aforesaid view of the matter, we are inclined to remit the matter back to the file of the Assessing Officer who shall conduct necessary enquiry to find out the exact nature of construction i.e., whether it has been constructed for residential use or for commercial use. If the building has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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