9911796707
TMI Blog2021 (9) TMI 994X X X X Extracts X X X X X X X X Extracts X X X X ..... idential flat to the assessee. With the support of documentary evidences, the assessee has demonstrated that all the three units were not independent as there was single entry and exit and stated that it was one residential house. The assessee has also enclosed copy of allotment letter dated 17th July, 2014 in the paper book wherein the developer has stated that tailor made combined flats on the same floor was specifically constructed for the allottee and there shall be single entry and exit for the allottee and maintenance as per the society rules would be applicable in singular manner on the built up area of 3045 square feet. We find that issues and facts raised before the Tribunal in the case of the assessee are similar to the facts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 7,89,596/- 2 The Ld. CIT (A) erred on facts and in law in treating one residential house to be as three independent residential houses for the purpose of computing exemption u/s 54, Total tax effect ₹ 7,89,596/- 3. The fact in brief is that return of income declaring total income of ₹ 11,12,090/- was filed on 29th August, 2015. The case was subject to scrutiny assessment and notice u/s. 143(2) of the act was issued on 20th Sep, 2016. During the course of assessment, the Assessing Officer noticed that assessee has sold residential house for a total consideration of ₹ 75 la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld. CIT(A) has dismissed the appeal of the assessee holding that as per the amendment in Finance Act, 2014 applicable w.e.f. assessment year 2015-16 wherein legislature has clarified that exemption is available only for investment in one house. 5. During the course of appellate proceedings before us, the ld. counsel has submitted paper booked comprising copies of documents and details of information furnished before the Assessing Officer and ld. CIT(A). The ld. has counsel referred letter dated 28th July, 2017 vide which detailed submission was made before the Assessing Officer along with documentary evidences demonstrating that three units were not independent as there was single entry and exit and they have combined three adjace ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as there was single entry and exit and stated that it was one residential house. The assessee has also enclosed copy of allotment letter dated 17th July, 2014 in the paper book wherein the developer has stated that tailor made combined flats on the same floor was specifically constructed for the allottee and there shall be single entry and exit for the allottee and maintenance as per the society rules would be applicable in singular manner on the built up area of 3045 square feet. We have also gone through the judicial pronouncement referred by the ld. counsel in the case of Geet Duggal (2013) 30 taxmann.com (Delhi). The relevant part of the findings of the Hon ble High Court of Delhi is reproduced as under:- Section 54/54F uses th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch a manner that an. independent residential unit consisting of two or three bedrooms may be carved out with an independent entrance so that it can be let out. He may even arrange for his children and family to stay there, so that they are nearby, an arrangement which can be mutually supportive. He way construct his residence in such a manner that in case of a future need he may be able to dispose of a part thereof as an independent house. There may be several such considerations for a person while constructing a residential house. We are therefore, unable to see how or why the physical structuring of the new residential house, whether it is lateral or vertical, should come in the way of considering the building as a residential house. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Purchase of two adjoining flats) - Assessment year 2015-2016 - During relevant year, assessee claimed exemption under section 54F on long-term capital gain invested in two bungalows which were adjacent to each other and used as one residential unit - Assessing Officer disallowed same on ground that assessee could have claimed exemption under section 54F with respect to investment in one bungalow only - However, under provisions of section 54F, no definition/clarification about area of residential property, has been provided, hence, one assessee can buy huge bungalow/property say thousand square meters and can claim deduction subject to conditions - Whether therefore, assessee could not have been deprived of benefit conferred under statute ..... X X X X Extracts X X X X X X X X Extracts X X X X
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