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TMI Blog2016 (7) TMI 1464X X X X Extracts X X X X X X X X Extracts X X X X ..... SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER For the Appellant- Shri Sunil Kumar Agarwala, JCIT(DR) For the Respondent- Shri K. Mallaharao, Advocate. ORDER Per INTURI RAMA RAO, AM: This is an appeal filed by the revenue directed against the order of the CIT(A)-12, Bangalore, dated 31/08/2015 for the assessment year 2012-13. 2. The revenue raised the following grounds: 1. The order of the learned CIT(A) is opposed to the law and facts of the case. 2. The learned CIT(A) erred in holding that the assessee is entitled for claim of deduction u/s 54 of the IT Act, 1961, in respect of two properties. 3. The learned CIT(A) erred in relying on the decisions of the Hon'ble Karnataka High Court in the case of D.An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the provisions of sec.54, the benefit can be claimed only in respect of one residential house. Briefly facts of the case are that during the previous year relevant to assessment year under consideration, the property in which the assessee had 1/3rd share was sold. The assessee s share of long term capital gains was ₹ 3,93,82,588/-.The assessee claimed the benefit of deduction u/s 54 by investing in two residential houses of ₹ 3,93,76,330/- and deduction u/s 54EC of ₹ 33 lakhs. However, the AO was of the opinion that the benefit u/s 54 can be claimed only in respect of one new residential building. Hence, restricted the deduction to ₹ 3,00,00,810/- thus making addition of ₹ 60,81,778/-. 4. Being aggrieved, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding should be residential in nature and 'a' should not be understood to indicate a singular number. [Para 6] Similarly in the case of Khoobchand M Makhija, 43 taxmann. com (Kar) (2014), the Hon'ble Karnataka High Court has observed as under: It is clear that the assessee was not attempting to evade tax. In fact, after purchasing two residential houses, still there remained unutilized capital gain, which he has offered for tax. Therefore, the context in which the expression residential house is used in section 54 makes it clear that it was not the intention of the Legislature to convey the meaning that it refers to a single residential house. The letter a in the context, which is used, should not be construed as mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred under section 54(1) of the Act. It was also made clear that while interpreting this word, the Court or the Tribunal or the Authorities have to keep in mind the facts of the particular case, as it is held in the case a cannot be read as singular, it also cannot be read as multiples so as to avoid paying tax under Section 45 of the Act. Therefore, it is necessary to look into the facts of each case and then find out in the circumstances of the said case, where the word a has to be read singularly or plurally. Respectfully following the decision, we hold that the assessee is entitled to the benefit of deduction u/s 54 even in respect of house property in more than one residential house. 7. In the result, the appeal filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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