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TMI Blog2021 (12) TMI 800X X X X Extracts X X X X X X X X Extracts X X X X ..... for AY 2011-12 involving proceedings u/s 143(3) rws 147of the Income Tax Act, 1961 ; in short the Act . Since common issues are involved in both these appeals, we decided to dispose of the same in combined order for the sake of conveyance. 2. To dispose of these appeals, we refer to the facts from ITA No. 1826/Hyd/2019 in the case of Bhupathi Rao Vaddepally. Therefore, the decision taken in this appeal shall mutatis-mutandis apply to the other appeal. The grounds raised in ITA No. 1826/Hyd/2019 which are common in other appeal, are as under: 1. Whether in the facts and circumstances, the order of the Id. CIT(A) in directing the Assessing Officer to allow the claim of the assessee u/s 54F of the Income Tax Act, is not perverse, illegal and likely to be set aside. 2. Whether in the facts and circumstances, the order of the Id. CIT(A) is justified in directing the Assessing Officer to consider all the residential flats received as consideration as part of reinvestment for the purpose of section 54F, when the assessee received multiple flats located on different floors separated by different blocks of gated community/apartment complex. 3. Whether in the facts and cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case the Hon'ble ITAT, Hyderabad Held as under:- Exemption u/ s. 54F only requires that the property should be of residential nature and the fact that the residential house consists of several independent units cannot be an impediment to grant relief u/s. 54F even if such independent units are on different floors. 2. CIT vs Syed Ali Adil ( Decision of AP High Court dated 20.12.2012): In this case though the decision was rendered in the context of Sec 54 of the IT Act the hon'ble high court held that the assessee was eligible for exemption in respect of a residential house which consists of multiple units. 6. The CIT(A) after considering the elaborate submissions as well as case law cited by the assessee, which were extracted in his order at pages 11 to 20 held that it is clear that even if the investment is made in multiple residential houses/units, the appellant will be entitled for exemption u/s 54F. Further, he held that it is also important to note that an amendment u/s. 54F took place vide Finance Act, 2014, wherein, a residential house was substituted with one residential house in India w.e.f. 01.04.2015. The said amendment very clearly stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EWS/LIG Blocks 2 Blocks (Block 11/A and 11/B) d) Independent Villas 40 Nos (Villa No. 1 to 40 e) Club house and Amenities f) Tot lots and Mandatory open areas g) Road and Driveways 10.2 The details of each block area as per page No. 46 of paper book, are as under: Apartment Each block area statement Block No. Construction pattern Each Floor Area Area in 5 Floors B1 C+S+5 Floor 7962 39810 B2 C+S+5 Floor 7962 39810 B3 C+S+5 Floor 7962 39810 B4 C+S+5 Floor 7962 39810 B5 S+5 Floor 6194 30970 B6 C+S+5 Floor 6194 30970 B7 C+S+5 Floor 12189 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30970 B8 15050 2x3BHK x 5floor B6 Full Block 30970 B9 30197 Partial Block B8 Partial Block 45800 B10 12289 Partial Block B9 Partial Block 45298 B11/A 18943 EWS B10 Partial Block 15656 B11/A 30082 LIG B11/A EWS 15847 B11/B 7670 EWS B11/B EWS 7100 Total area in SFT = 300199 246921 SFT Collective area = 300199 + 246921 = 547120 10.4 Allotment of the apartments units ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OX. AREA OF CONSTRUCTION FOR INDEPENDENT HOUSES: 1,00,000 SFT (40 Villas) ALL THE AREAS CONSJDEREDIMENTIONED herein are as per Saleable area in SFT only which includes total constructed area including balconies, sit out, staircases, lift rooms, Security rooms, games room, if any; electrical meter room, Economic Weaker Section, Low Income Group housing, pump room, generator rooms if any, common areas, circulation areas but excludes car parking area. The construction areas and the layout may be altered by the SECOND PARTY to meet the marketability demands, at any stage or as per stipulated rules of concerned authorities. That the First Party shall retain an area of 2500 Sq. yds out of Ac 10 - 20 Guntas for their exclusive use and enjoyment of the First Party with absolute right of Ownership. The Second party is not haying any claim in and over the 2500 Sq. yds which is clearly mentioned in the plan in red colour annex to this Agreement and the said area Is abutting the 60 Feet of main Road which is facing towards East and South after deleting the area for the Transformer Yard on the Comer of South East. The Second party shall provide supply lines for Electrical, Drain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cases, it is not clear as to whether one assessee has been allotted house/houses in a Block/Tower. We have gone through the allotment of apartment, which has been enumerated in para 10.3 cited supra, it is clear that some of the Blocks have been allotted fully to the assessee/assessees and some of the Blocks are partially allotted amongst the assessees and developers. In this regard, the AR of the assessee has not submitted any documents or any allotment letter for ascertaining the number of flats allotted to the assessee/assessees by the developers which is root for determining the deduction u/s 54F of the IT Act. The CIT(A) s decision is right if the assessee has been allotted a house or more than a house in a Block/Tower as per the decision cited supra. The said blocks consist of more than a floor i.e. 5 floors. We, therefore, remit this file back to the AO for verification for the allotment of flats, which have been allotted to the assessee in a Block/Tower or in different Blocks/Towers. If the AO is found that the assessee has been allotted residential units in more than Blocks/Towers, the AO will recompute the capital gain afresh in the hands of the assessee as per law after ..... X X X X Extracts X X X X X X X X Extracts X X X X
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