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TMI Blog2019 (10) TMI 1528X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances of the case and in law, the Ld Commissioner of Income-tax(Appeals) has erred in deducing the fact that assessee had sold land with residential shed and is eligible for deduction u/s 54. Whereas, the assessee did not bring anything on record that shed on the land was a residential property. 3. On the facts and circumstances of the case and in law, the Ld. Commissioner of Income-tax(Appeals) has erred in allowing the assessee to take benefit of section 54 of the Income-tax Act. Whereas the matter being related to sale of property which was not a residential property therefore making assessee ineligible for deduction u/s 54 of the Income-tax Act. 4. On the facts and circumstances of the case and in law, the Ld. Commissioner of Income-tax(Appeals) has erred in ignoring the fact that assessee had himself in reply to the show cause issued by the AO in respect of disallowance u/s 54F had quoted case laws and drew inference out of them to be eligible for deduction u/s 54F and not 54 of the Income-tax Act." 5. The appellant prays that the order of Ld. CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored. 2. At the time of hearing, Ld. Couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agricultural land in the property card and situated beyond 8 Km from the municipal limits it is not a "capital asset" liable for capital gains tax. Reliance was placed on the decision of the Hon'ble Bombay High Court in the case of CIT v. Debbie Allemao and Others [331 ITR 59]. Ld. Counsel for the assessee further placing reliance on the decision of the Hon'ble Bombay High Court in the case of Ahmedabad Electricity Co. Ltd v. CIT [199 ITR 351] submits that the additional ground raised by the assessee be admitted in view of the said decision wherein the Hon'ble Jurisdictional High Court held that the Tribunal had jurisdiction to permit additional grounds to be raised before it even though these might not have arisen from AAC's Order, so long as these grounds were in respect of subject matter of entire tax proceedings. 8. Ld. DR strongly objected for admission of additional ground. 9. Before going into the additional ground raised by the assessee, we are inclined to decide the regular ground raised by the assessee in his cross objection. 10. Briefly stated the facts are that, the assessee is an individual and engaged in the business of advertising consultancy filed hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ats should be allowed as deduction and should not be restricted to one residential house. Ld. Counsel for the assessee submits that prior to the amendment to the provisions of section 54/54F which came into effect from the A.Y. 2015-16 "a residential house" should be treated as plural and should not be restricted to only one residential house. Reliance was placed on the decision of the Hon'ble Madras High Court in the case of Tilokchand & Sons v. Income Tax Officer [263 Taxman 713 (2019)]. Referring to the said decision Ld. Counsel for the assessee submits that the Hon'ble High Court held that the word "a residential house" as occurring in section 54(1) can include more than one or plural residential house. Ld. Counsel for the assessee submits that the Hon'ble High Court held that where assessee HUF sold its residential house and invested capital gain in purchasing more than one residential house within the stipulated time limit, assessee would be entitled to the benefit of exemption u/s. 54 of the Act. Ld. Counsel for the assessee further submits that the Hon'ble High Court had also considered amendment to the provisions of section 54(1) whereby the legislature had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shed that consideration so received on transfer of long-term capital asset has been invested in constructing a residential house, it would satisfy the ingredients of section 54. If the appellant is able to establish that he had invested the entire net consideration in construction of residential house within the stipulated period, it would meet the requirement of section 54 and he would be entitled to get the benefit of section 54. The exemption under section 54 is available on only long term capital gain arise from sale of residential property to acquisition of new residential property. The appellant has sold residential shed erected thereon and invested residential house property. The appellant has invested the sum received on sale for purchase of new house property in three different flats. The claim of exemptions u/s.54 of I.T.Act is applicable for purchase of one residential house property. During the scrutiny proceedings, appellant had filed revised computation vide letter dated 05.11.2015 and and requested to grant claim of exemptions of one residential house property. In view of the above, the appellant is entitled to deduction of one residential house property i.e. flat No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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