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TMI Blog2015 (10) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 54F of the Act. We find that the view taken by the impugned order on facts is a possible view and nothing has been shown to us to hold that view of the Tribunal is perverse or arbitrary. Thus, no substantial question of law arises for our consideration. - Decided against revenue. - INCOME TAX APPEAL NO.1715 OF 2013 - - - Dated:- 15-9-2015 - M.S.SANKLECHA AND G.S.KULKARNI, JJ For The Appellant : Mrs.S.V.Bharucha i/b Ms.P.S.Cardozo Advocate For The Respondent : Mr.F.V.Irani with Mr.A.K.Jasani Advocates JUDGMENT : The appellant-revenue has filed this appeal under section 260A of the Income Tax Act, 1961 (the Act) against the order dated 15th February 2013. The Assessment year involved is Assessment Year 2008- 09. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid flats and the joining of the flats was subsequent to purchase. Thus, the Assessing Officer in his order dated 30th December 23010 passed under section 143 (3) of the Act restricted the benefit under section 54F of the Act only to one residential premises. Thus bringing to tax on amount of ₹ 3.35 crores as long term capital gains. 4. In appeal, the Commissioner of Income Tax (Appeals) by order dated 2nd November, 2011 placed reliance on the Ward Inspector's report and dismissed the appeal. It held that the two flats were having separate kitchens as the two flats were originally built as two separate houses. Moreover the two flats had been joined together only subsequently would not mean that the two flats are used as one res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned counsel for the revenue submits that the Tribunal by the impugned order is not justified in holding that the respondent-assessee was entitled to exemption under section 54F of the Act in respect of both flats. This is because they have separate kitchens, separate electricity meters and separate maintenance bills. Thus, mere joining of the two flats post their purchase would not convert the two flats into one house for the purposes of section 54F of the Act. 7. Mr.Irani learned counsel appearing for the respondent- assessee placed reliance upon the report dated 16th December, 2010 of the Ward Inspector of the Income Tax Department. It is submitted that the impugned order has relied upon the Ward Inspector's report to allow the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lats were consolidated into one flat and used as such. This was on the basis of the Ward Inspector's report as one kitchen was functional post the purchase of two flats as it had been converted into one flat. The impugned order relies upon the following observations of the Tribunal in Ms.Sushila M.Jhaveri (supra) which holds as under : ......However where more than one unit are purchased which are adjacent to each other and are converted into one house for the purpose of residence by having a common passage common kitchen etc, then it would be a case of investment in one residential house and consequently the assessee would be entitled to exemption. 10. The fact that only one kitchen was functional in the house was itself an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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