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TMI Blog2014 (6) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... though in the joint name of the assessee and his wife, the exemption u/s 54/54F is allowable – Relying upon ITO Vs. Ms. Sushila M. Jhaveri [2007 (4) TMI 289 - ITAT BOMBAY-I] - the exemption u/s 54F is available in respect of the investment in two adjacent houses which constitute one residential unit. The claim u/s 54/54F may be allowable in case of purchase of more than one new flats when more than one flat constitutes one residential house - all three flats in which the assessee invested the consideration received on sale of the old assets are located at the same floor of the building - the claim of the assessee would not fall under the category of bogus of absolute untenable claim under the law - The assessee has brought on record the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- on the investment in three flats. The AO asked the assessee to explain as to how it can claim deduction u/s 54F on three different units on the same floor and in the name of three different persons, as it is contrary to the provisions of section 54F. In response the assessee filed revised return of income and restricted its claim u/s 54F only to one flat. Consequently the assessee withdrew its claim in respect of other two flats which were jointly purchased in the name of wife and son. The AO initiated the penalty proceedings u/s 271(1)(c) in respect of the claim withdrawn by the assessee u/s 54F in respect of two flats purchased in the joint name of wife and son respectively. In the penalty proceedings the assessee contended before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been made from the sale proceeds of the asset sold by the assessee. Thus the Ld. AR of the assessee has submitted that exemption u/s 54F is allowable when a new hosue is purchased in the joint name of the assessee and his wife as well as assessee and his son. In support of his contention he has relied upon the decisioin of Hon ble Delhi High Court in the case of CIT Vs. Kamal Wahal (2013) 258 CTR 251 (Del). He has also relied upon the following decisions. (i) DIT (Intl) Vs. Mrs. Jennifer Bhide (2012) 252 CTR 444 (Kar) (ii) CIT Vs. Ravinder Kumar Arora (2012) 252 CTR 392 (Del) (iii) CIT Vs. Gurnam Singh (2008) 218 CTR 674 (P H) 5. Placing reliance on the above decisions, Ld. AR has submitted that it has been held in all these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Venkatesh Murthy Vs. CIT [ITA No. 720/2007/C/W ITA No. 719/2007] (iv) Price Waterhosue Coopers Pvt. Ltd. Vs. CIT (2012) 253 CTR 1(SC) 7. On the other hand the Ld. DR has submitted that it is not a voluntary admission of income by withdrawal of exemption u/s 54F but the assessee has revised its income only when the AO detected the wrong claim made by the assessee u/s 54F. The Ld. DR has further contended that once the assessee has withdrawn the claim u/s 54F by considering the same as wrong claim then the penal provisions of section 271(1)(c) are attracted. He has relied upon the orders of authorities below. 8. We have considered the rival submissions as well as relevant material on record. There is no dispute that the assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meaning that it refers to a single residential house. After analyzing the provisions of section 54, the Hon ble High Court has held that the said expression a residential house should be read in consonance with other words buildings and lands and, therefore, the singular also permits the use of plural. This view was reiterated in the case of Cit Vs. Smt. K.G. Rukminiamma (supra), wherein it was held that four residential flats constitute a residential house for the purpose of section 54. Thus in view of the various decisions as relied upon by the assessee, it is clear that the claim u/s 54/54F may be allowable in case of purchase of more than one new flats when more than one flat constitutes one residential house. In the case of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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