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TMI Blog2017 (5) TMI 1310X X X X Extracts X X X X X X X X Extracts X X X X ..... l Member For Assessee : Shri A.V. Raghuram For Revenue : Smt. D. Komali Krishna ORDER Per V. Durga Rao, J. M. This is an appeal by assessee against the order of the Commissioner of Income Tax (Appeals)-1, Hyderabad, dated 22-09-2016 for the AY. 2010-11, wherein the assessee has raised the following grounds of appeal: 1. The order of the learned CIT(A) is erroneous both on facts and in law to the extent it is prejudicial to the assessee. 2. The learned CIT(A) erred in holding that deduction u/s.54 is available only for one flat in spite of bringing to notice the decision in the case of Anand Basappa of Karnataka High Court and that of the Hyderabad I.T.A.T., in the case of Conjeevaram Krishnan and not even st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction u/s 54 does not arise for all the 4 flats. The Assessing Officer has already allowed exemption u/s 54 for one flat, which is correct and fair. He, therefore, confirmed the action of the AO in making the addition of the balance amount as capital gains. 5. Aggrieved by the order of the CIT(A), the assessee is in appeal before us. 6. Before us, the ld. AR of the assessee canvassed that the issue in dispute is squarely covered by the decision of the coordinate bench of this Tribunal in the case of Late K. Jaipal and others in ITA No. 1188/Hyd/2015 and others dated 20th November, 2015. A copy of this order has been placed on record. 7. Ld. DR on the other hand neither controverted the submission of the ld. AR nor brought any con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 54F. Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house.- (1) Subject to the provisions of sub-section (4), where, in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accorda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mendment reads as follows: 32a. Words constructed, one residential house in India shall be substituted for constructed, a residential house by the Finance (No.2) Act, 2014, with effect from 01.04.2015. 10. The above-said amendment to Section 54F of the Income Tax Act, which will come into effect only from 01.04.2015, makes it very clear that the benefit of Section 54F of the Income Tax Act will be applicable to constructed, one residential house in India and that clarifies the situation in the present case, i.e, post amendment, viz., from 01.04.2015, the benefit of Section 54F will be applicable to one residential house in India. Prior to the said amendment, it is clear that a residential house would include multiple flats ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in T.C.(A)No.656 of 2005 and granted the benefit to the assessee under Section 54F of the Income Tax Act on the investment made in the four flats. 13. Hence, the above-said decisions of this Court make it clear that the property should be assessed as one unit, even though different flats are available 8. The jurisdictional High Court in the case of CIT V/s. Vittal Krishna Conjeevaram (supra), following the decision in the case of CIT V/s. Syed Ali Adil (supra) and the decision of the Delhi High Court in the case of CIT V/s. Gita Duggal (supra) dismissed the appeal of the Revenue, confirming the order of the ITAT. The above judgments lay down a principle that merely because a residential house consists of several independe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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