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TMI Blog2016 (5) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... rred in disallowing exemption under section 54 of the Income- tax Act, 1961, of Rs. 21,03,800. The appellant prays that disallowance of exemption under section 54 of the Income-tax Act of Rs. 21,03,800 shall be deleted. (2) The learned Commissioner of Income-tax (Appeals) has further erred in this connection in holding that the appellant had purchased two flats in two different buildings and location and only one flat is eligible for exemption under section 54 of the Income-tax Act, 1961, disallowing exemption of second flat under section 54 of the Income- tax Act, 1961. (3) The learned Commissioner of Income-tax (Appeals) has erred in considering expression a residential house as singular number instead of plural sense that the buildin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has submitted that both flats were taken in the same Vile Parle (E), Mumbai for residential purpose hence the same may be treated as one residential unit. The Assessing Officer did not agree with the contention of the assessee and he denied deduction in respect of one flat. He also denied deduction of Rs. 1,76,600 claimed by the assessee as brokerage. 4. The matter was carried before the first appellate authority wherein the Commissioner of Income-tax (Appeals) allowed the issue on brokerage which is not the subject-matter before us. However, the Commissioner of Income-tax (Appeals) upheld the order of the Assessing Officer by observing that the action of the Assessing Officer in allowing deduction in respect of only one flat is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee entered into an agreement with a developer for development of a piece of land. Under the agreement, the assessee was to receive 43.75 per cent. of the built-up area after the development. This 43.75 per cent built-up area was translated into five flats. the assessee calculated the capital gains based on the sale consideration of Rs. 1,09,75,620. According to the assessee, this was the value of the flats, which were to be received by her and was equivalent to 56.25 per cent. of the undivided share of the land given by her to the developer. The assessee claimed exemption under section 54F of the Income-tax Act, 1961, on the value of the five flats in the assessment year 2007-08. The Assessing Officer granted the benefit of exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ercentage of the built-up area vis-a-vis the undivided share of land. In this regard the learned authorised representative for the assessee submitted that prior to the amendment to section 54F effective from April 1, 2015 the assessee was entitled for the benefits of more than one flat as discussed above. Similar view has been taken by the hon'ble Andhra Pradesh High Court in the case of CIT v. Syed Ali Adil [2013] 352 ITR 418 (AP). Nothing contrary was brought to our knowledge on behalf of the Revenue in regard to above discussed legal preposition. 6. The facts being similar, following the same reasoning the Assessing Officer is directed to allow the claim of the assessee with respect to two flats purchased by the assessee as discusse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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