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TMI Blog2021 (9) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... l gains on sale of its property on purchase of both the flats, more so, when the flats are situated side by side and the builder has effected modification of the flats to make it as one unit, despite the fact that the flats were purchased by separate sale deeds. - Exemption to be allowed - Decided against the revenue. - ITA. Nos: 1894 & 2097/Ahd/2018 - - - Dated:- 10-9-2021 - Shri Mahavir Prasad, Judicial Member And Shri Amarjit Singh, Accountant Member For the Appellant : Shri Ms. Amrin Pathan, A.R. For the Respondent : Shri Lalit P. Jain, Sr. D.R. ORDER PER MAHAVIR PRASAD, J.M. 1. These two appeals have been filed by the Assessee is directed against the order of the Commissioner of Income Tax ( her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dinate Bench granted relief to the assessee with following observations: 8. We have heard the rival contentions of both the parties and perused the materials available on record. The limited issue before us arises for our adjudication whether the assessee can claimed deduction/exemption under section 54F of the Act as applicable for the year under consideration for the investment made in more than 1 residential units. The provisions of section 54F of the Act as applicable for the year under consideration reads as under: 54F. (1) 31[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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tention of the legislation to convey the meaning that it refers to a single residential house. If that was the intention, they would have used the word 'one'. As in the earlier part, the words used are buildings or lands which are plural in number and that is referred to as 'a residential house', the 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 'land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d sub-section (1) of section 54F so as to provide that the exemption is available if the investment is made in one residential house situated in India. These amendments will take effect from 1st April, 2015 and will accordingly apply in relation to assessment year 2015-16 and subsequent assessment years. 8.3 Thus the controversy whether a residential house should be read as one residential house prior to such amendment has been put to rest by changing the language in the provisions of the Act but the same is effective from the assessment year 2015-16. Thus in such a situation we can safely conclude that the assessee prior to such amendment was eligible for exemption under section 54F of the Act even he makes the investment in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axman 87/[2010] 8 taxmann.com 121 (Kar.) where a residential house was transferred and four flats in a single residential complex were purchased by the assessee, it was held that all four residential flats constituted a residential house for the purpose of section 54 and that the four residential flats cannot be construed as four residential houses for the purpose of section 54. Admittedly the two flats purchased by the assessee are adjacent to one another and have a common meeting point. In the impugned order, the Tribunal has also relied upon the decisions in K.G. Vyas's case (supra), P.C. Ramakrishna, HUF's case (supra) and PremPrakash Bhutani's case (supra) wherein it was held that exemption under section 54 only requires ..... X X X X Extracts X X X X X X X X Extracts X X X X
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