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TMI Blog2020 (11) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... e are of the view that there is no mistake, much less an apparent mistake, in the order of the Tribunal. The Tribunal has clearly given a finding that the property at N.R. Colony belonged to one owner, Smt. Janaki Iyengar and as per the Will of Smt. Janaki Iyengar, the Ground Floor of the premises which was numbered as Door No.37 was given to Smt. Janaki s sister, Dr. M. Vaidehi and the 1st Floor numbered as Door No.37/1 was given to Smt. Janaki s nephew, Shri P. Ramanuja Chari. Both these owners of Ground Floor and 1st Floor sold the property to the assessee. The Tribunal clearly observed that the entire property constitutes one residential house, but was bifurcated with two Door Nos. for Ground Floor and 1st Floor with common entrance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chase of a property at N.R. Colony. 3. The case of revenue was that for claiming deduction u/s. 54F of the Act, the assessee should not own more than one house, other than the new asset. The N.R. Colony property was a single piece of property, but Ground Floor was owned by one person and 1st Floor was owned by another person. It was the case of revenue that since the owners were different, it has to be construed that the assessee purchased two properties and since the assessee already owned another property, deduction u/s. 54F of the Act could not be given. This aspect has been dealt with by the Tribunal in para 20 of the its order which reads as follows:- 20. As far as the case of the AO that assessee has purchased two properties un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CIT Vs. Gita Duggal (2013 30 taxmann.com 230 (Delhi). In the aforesaid decision, the facts were that the assessee entered into a development agreement pursuant to which the developer demolished the property and constructed a new building comprising of three floors. In consideration of granting the development rights, the assessee received ₹ 4 crores and two floors of the new building. The AO held that in computing capital gains, the cost of construction of ₹ 3.43 crores incurred by the developer on the development of the property had to be added to the sum of ₹ 4 crores received by the assessee. The assessee claimed that as the said capital gains was invested in the said two floors, she was eligible for exemption u/s 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... othing in the section which requires that the residential house should be built in a particular manner, it seems to us that the income tax authorities cannot insist upon that requirement. A person may construct a house according to his plans, requirements and compulsions. A person may construct a residential house in such a manner that he may use the ground floor for his own residence and let out the first floor having an independent entry so that his income is augmented. It is quite common to find such arrangements, particularly post-retirement. One may build a house consisting of four bedrooms (all in the same or different floors) in such a manner that an independent residential unit consisting of two or three bedrooms may be carved out w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the stand of revenue as contained in the petition. 6. We are of the view that there is no mistake, much less an apparent mistake, in the order of the Tribunal. The Tribunal in para 20 of its order has clearly given a finding that the property at N.R. Colony belonged to one owner, Smt. Janaki Iyengar and as per the Will of Smt. Janaki Iyengar, the Ground Floor of the premises which was numbered as Door No.37 was given to Smt. Janaki s sister, Dr. M. Vaidehi and the 1st Floor numbered as Door No.37/1 was given to Smt. Janaki s nephew, Shri P. Ramanuja Chari. Both these owners of Ground Floor and 1st Floor sold the property to the assessee. The Tribunal in para 20 of the order clearly observed that the entire property constitutes one ..... X X X X Extracts X X X X X X X X Extracts X X X X
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