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TMI Blog2019 (7) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the Chartered Accountant M/s Manish Modi & Associates for onward filing of the appeal. However, the concerned Chartered Accountant CA Sneha Shah who was handling assessee's matter, left the organization without handing over the papers which resulted into delayed filing of the appeal. The Ld. DR submitted that the assessee remained negligent in preferring appeal within prescribed time. Upon careful consideration, keeping in view the principle of natural justice and ratio of decision of Hon'ble Apex Court in 167 ITR 471 (SC) Collector, Land Acquisition Vs. Katiji, the bench formed an opinion that the delay deserve to be condoned. Accordingly, we proceed to dispose-off the appeal on merits. 2.1 Section 54 of the Income Tax Act, 1961 [in short 'Act'], as it stood during AY 2013-14, provides for a deduction against certain Long-Term Capital Gains earned by an individual assessee on account of investment made by way of purchase / construction of 'a residential house property' within specified time period. The Finance Act, 2014 substituted the expression 'a residential house property' with the words 'one residential house' with effect from 01/04/2015. The rationale of the amendment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or to 01/04/2015. At the same time the decision of Hon'ble Punjab & Haryana High Court in Pawan Arya V/s CIT [11 Taxmann.com 312] was distinguished since no opinion, in detail, was expressed in the judgment. 2.3 The Hon'ble Karnataka High Court in Khoobchand M. Makhija [43 Taxmann.com 143] considering the decision of same court in CIT V/s Smt. K.G.Rukminiamma [331 ITR 211] interpreted the term 'a' in the context of Section 13 of the General Clauses Act, 1897 in the following manner: - 9. The word 'a' is not defined in the Act. When a word is not defined in the Act itself, it is permissible to refer to dictionaries to find out the general sense in which that word is understood in common parlance. However, in selecting one out of the various meanings of a word, regard must always be had to the context as it is a fundamental rule that the meanings of words and expressions used in an Act must take their colour from the context in which they appear. Therefore, when the context makes the meaning of a word quite clear, it becomes unnecessary to search for and select a particular meaning out of the diverse meanings a word is capable of, according to lexicographers. Dictionarie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ything repugnant in the subject or context. - (i) words importing the masculine gender shall be taken to include females; and (ii) words in the singular shall include the plural, and vice versa." 14. This Court in the case of CIT v. Smt. K.G. Rukminiamma [2011] 331 ITR 211/196 Taxman 87/[2010] 8 taxmann.com 121 (Kar.), had an occasion to consider Section 54 of the Act and had held as under: 'For a proper appreciation of the aforesaid contention, it is necessary to have a careful look at Section 54 of the Income Tax Act, which reads as under: "54. Profit on sale of property used for residence - (1) Subject to the provisions of subsection (2), where, in the case of an assesses being an individual or a Hindu undivided family, the capital gain arises from the transfer of a long-term capital asset, being buildings or lands appurtenant thereto, and being a residential house, the income of winch is chargeable under the head 'Income from house property' (hereafter in this section referred to as the original asset), and the assesses has within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e original asset. An asset newly acquired after the sale of the original asset also can be buildings or lands appurtenant thereto, which also should be "a residential house." Therefore the letter "a" in the context it is used should not be construed as meaning "singular." But, being an indefinite article, the said expression should be read in consonance with the other words "buildings and lands" and, therefore, the singular "a residential house" also permits use of plural by virtue of Section 13(2) of the General Clauses Act. This is the view which is taken by this court in the aforesaid Anand Basappa's case in I.T.A.No. 113/2004, disposed of on September 20, 2008 CIT v. D. Ananda Basappa [2009] 309 ITR 329 (Kar.)].' 2.4 Similar view has been expressed by Hon'ble Madras High Court in its earlier decision titled as CIT V/s Gunamal Jain [160 DTR 221 03/03/2017] after applying the decisions of same court in CIT V/s V.R. Karpagam [373 ITR 127] and the decision of Hon'ble Karnataka High Court in CIT V/s Smt. K.G.Rukminiamma [331 ITR 211]. The Hon'ble Delhi High Court relying upon the decision of Hon'ble Karnataka High Court in CIT V/s D. Ananda Basappa [309 ITR 329] took simila ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same and placing reliance on the decision of Hon'ble Punjab & Haryana High Court rendered in Pawan Arya V/s CIT [11 Taxmann.com 312], Ld. AO denied deduction to the extent of investment in three flats situated at Navi Mumbai, which aggregated to Rs. 105.93 Lacs. 4. Aggrieved the assessee preferred further appeal before Ld. first appellate authority wherein Ld. CIT(A), at para 5.2, considered the decision of Special Bench of Mumbai Tribunal in ITO V/s Sushila M.Jhaveri [107 ITD 327] to arrive at conclusion that the word 'a' was intended for investment in one residential house property only. The said decision, in the opinion of Ld. CIT(A), was approved by Hon'ble Bombay High Court in CIT V/s Raman Kumar Suri [212 Taxman 411]. Further reliance was placed on the decision of Hon'ble Bombay High Court in CIT V/s Devdas Naik [49 Taxmann.com 30] and the decision of Mumbai Tribunal in Neville J.Pereira V/s ITO [8 Taxmann.com 68] to confirm the stand of Ld. AO. 5. Aggrieved, the assessee is in further appeal before us. Although the assessee has raised as many as 7 Grounds of appeal, however, Ld. Authorized Representative for Assessee, Shri M. Subramanian, submitted that the assessee is pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court, in that decision. 6.3 Similar was the factual matrix in the decision of Hon'ble Bombay High Court in CIT V/s Devdas Naik [supra] wherein it was admitted position that though the flats were acquired under different agreement, however general / internal layout plan indicated that there was only one common kitchen for both flats and both flats were used as a single unit and the flats were constructed in such a way that adjacent units or flats could be combined into one. In that decision, the Hon'ble Court, in similar manner, dismissed revenue's appeal finding that no substantial question of law arose. 6.4 Proceeding further, we find that the recent decision of Hon'ble Madras High Court in Tilokchand & Sons V/s ITO [supra] squarely applies to the fact of the case. While arriving the decision, the Hon'ble court has followed the decision of Hon'ble Karnataka High Court in CIT V/s D. Ananda Basappa [supra] & CIT V/s Khoobchand M. Makhija [supra]. Similar is the interpretation of word 'a' by Hon'ble Karnataka High Court in CIT V/s Smt. K.G.Rukminiamma [supra] and the decision of Hon'ble Madras High Court in its earlier decision titled as CIT V/s Gunamal Jain [supra] after applying ..... X X X X Extracts X X X X X X X X Extracts X X X X
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