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TMI Blog2020 (6) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... the division bench of this court in ITA No.783/2008 dated 27.08.2010? 2. The issue, which arises for consideration in this appeal is whether the assessee is entitled to claim exemption under Section 54 of the Act as he had purchased more than two houses. In order to appreciate the factual background, in which the aforesaid issue arises for consideration, reference to relevant facts is necessary, which are stated herein after: 3. The assessee was the owner of a residential property situate at Harrington Road Chetpet, Chennai. The said property was sold vide registered sale deed dated 09.10.2002 for a consideration of Rs. 2,68,89,375/-. The assessee filed return of income on 09.07.2003 for Assessment year 2003-04 declaring income of Rs. 1,68,52,920/-, under the head income from salary, house property, capital gains and income from other sources and paid tax of Rs. 49,57,706/-. The assessing officer issued a notice under Section 148 of the Act calling upon the assessee to file the return of income disclosing true particulars of income chargeable to tax. The assessee vide communication dated 31.03.2008 submitted that original return of income be treated as return of income for procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luation authority is Rs. 4,06,56,735/-. Therefore, by placing reliance on decision of the Lucknow Bench of the tribunal in 'JITENDRA MOHAN SAXENA VS. ITO', (305 ITR (AT) 62), the assessing officer was directed to re-compute the value of the property at Rs. 4,06,56,735/-. It was further held that decision of this court in 'CIT VS. ANAND BASAPPA', 309 ITR 329 does not apply to the fact situation of the case as the assessee had made investment in residential properties, which are situate in different places in Bangalore and therefore, the benefit of exemption under Section 54 of the Act cannot be granted. In the result, the appeal was partly allowed. 6. The assessee approached the tribunal by filing an appeal. The tribunal by an order dated 17.09.2010 inter alia by taking into account the sale instances in the vicinity during the relevant period put forth by the assessee, subject property being a corner plot and the fact that District Valuation Officer had fixed land rate at Rs. 2,220/- per square feet without assigning any basis or comparison / citing any sale instances in the vicinity for the relevant period, the value of the land was fixed at Rs. 1,869/- per square ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 329 (KARNATAKA), 'CIT VS. VR KARPAGAM', 373 ITR 127 (MADRAS), 'CIT VS. SYED ALI ADIL', 352 ITR 418 (ANDHRA PRADESH), 'G.CHINNADURAI VS. ITO', 74 TAXMANN.COM 227 (MADRAS). 8. On the other hand, learned counsel for the revenue submitted that the word used 'a residential house' has to be interpreted in the facts and circumstances of the case. It is further submitted that assessee in the facts of the case is not entitled to the benefit of Section 54(1) of the Act and the same would amount to abuse of law. It is further submitted that an attempt is made by the assessee to evade the tax. Learned counsel for the revenue has invited our attention to the decision relied by learned Senior Counsel for the assessee in the case of K.G.RUKMINIAMMA supra and has pointed out that on a site a residential premises existed, which was demolished and was given to a builder under a Joint Development Agreement for putting up flats. In the aforesaid factual background, it was held that all four flats are situate in a residential building and therefore, constitute 'a residential house' for the purposes of Section 54 of the Act. Similarly, it is pointed out that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... auses Act, 1897 held that unless there is anything repugnant in the subject or context, the words in singular shall include the plural and vice versa. It was further held that context in which the expression 'a residential house' is used in Section 54 makes it evident that it is not the intention of the legislature to convey the meaning that it refers to a single residential house. It was also held that an asset newly acquired after sale of original asset can also be buildings or lands appurtenant thereto, which also should be residential house, therefore, the letter 'a' in the context it is used should not be construed as meaning singular, but the expression should be read in consonance with other words viz., buildings and lands. Accordingly, the contention raised by the revenue was rejected. Similar view was taken by a bench of this court in KHOOBCHAND M. MAKHIJA supra, B.SRINIVAS supra and in the case of SMT.JYOTHI K MEHTA supra. The Madras High Court while dealing with Section 54 of the Act as it stood prior to amendment by Finance Act No.2/2014 in the case of TILOKCHAND AND SONS supra took the similar view and held that the word 'a' would normally mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... WS OF ENGLAND, Volume 22, Para 1682, Page 796, the relevant extract reads as under: The enunciation of the reasons or principle on which a question before a court has been decided is alone binding as a precedent. This underlying principle is often termed the ratio decidendi, that is to say, the general reasons given for the decision or the general grounds on which it is based, detached or abstracted from the specific peculiarities of the particular case which gives rise to the decision. [ALSO SEE: 'STATE OF HARYANA VS. RANBIR', (2006) 5 SCC 167 & 'GIRNAR TRADERS VS. STATE OF MAHARASHTRA', (2007) 7 SCC 555]. 15. This Court as well as Madras and Delhi High Court have interpreted the expression 'a residential house' and have held that the aforesaid expression includes plural. The ratio of the decisions rendered by coordinate bench of this court are binding on us and we respectively agree with the view taken by this court while interpreting the expression 'a residential house'. Therefore, the contention of the revenue that the assessee is not entitled to benefit of exemption under Section 54(1) of the Act in the facts of the case does not deserve acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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