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TMI Blog2022 (8) TMI 1190X X X X Extracts X X X X X X X X Extracts X X X X ..... rically observed in the aforestated judicial pronouncement that the deeming provisions are for the purpose of computation of income from house property and are applicable for provisions of sections 22 to 26 of the Act for computing annual value of the property. However, section 54F is an independent provision for granting exemption in respect of capital gain of transfer of certain capital asset. The assessee in this case satisfies the condition provided under the said provision. Therefore, placing reliance on the aforestated decision and the facts of this case we do not find any reason why the assessee should not be granted exemption u/s 54F of the Act. In view thereof, we set aside the order of the ld. CIT(A) and allow the appeal of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee and his wife are co-owners jointly owning two flats where the assessee was having 50% share in each flat. Before the sale of shares of a private limited company, the assessee made a gift of his share in one flat by registered gift deed to his wife. Therefore, his wife became the full owner of the flat in respect of one flat and for the other flat the assessee was having 50% share while his wife was having the other 50% share. That from the long term capital gain on sale of shares of a private limited company, the assessee purchased another flat and claimed exemption u/s 54F of the Act. This exemption was claimed since the assessee on the date of sale of shares of a private limited company was owning only 50% share in one flat. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged to the assessee and thereafter it was transferred in the name of the assessee‟s wife by execution of settlement deed during the year 2003. The case of the revenue was that the assessee was not entitled for exemption under proviso (b) of section 54F clause (1) of the Act as it states that the income from such residential house property other than one residential house owned on the date of transfer of the original asset is chargeable under the head income from house property . The Tribunal has considered the provisions of section 54F by observing that the A.O had passed the impugned assessment order without taking into consideration the provisions of section 27 clause (i) of the Act which is a deeming provision only applicable for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vations of the Hon‟ble Madras High Court (supra), the application of section 27 of the Act in this case is mis-placed so far as the department is concerned since it has been categorically observed in the aforestated judicial pronouncement that the deeming provisions are for the purpose of computation of income from house property and are applicable for provisions of sections 22 to 26 of the Act for computing annual value of the property. However, section 54F is an independent provision for granting exemption in respect of capital gain of transfer of certain capital asset. The assessee in this case satisfies the condition provided under the said provision. Therefore, placing reliance on the aforestated decision and the facts of this ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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