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TMI Blog2023 (11) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... ier legal position will continue to hold. It is also inferred that post amendment, i.e. after 01.04.2015, the exemption u/s 54 will be available only in respect of one residential house in India and not in respect of multiple houses. Amendment made available on the statute, vide the Finance (No. 2) Act, 2014 w.e.f. 01.04.2015 pursuant whereto the term a residential house had been substituted by one residential house in India , rather supports the fact that the restriction of making the investment in only one residential house had been made available on the statute only with effect from A.Y. 2015-16, and as such cannot be extended to the years prior to that. We find that our aforesaid view is fortified by the judgment of Hon ble High Court of Karnataka in the case of CIT Vs. Khoobchand M. Makjija [ 2013 (12) TMI 1525 - KARNATAKA HIGH COURT] Since the issue pertains to assessment year 2013-14 i.e. before the amendment in the statute the appeal of the assessee is hereby allowed. - Dr. B. R. R. Kumar, Accountant Member And Ms. Astha Chandra, Judicial member For the Assessee : Sh. Rajeev Ranjan, Assessee For the Revenue : Sh. Vivek Vardhan, Sr. DR ORDER P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15.44,750 Different location 5 Harender Singh Navi Mumbai 43,42,500 Different location 5. The AO restricted the exemption u/s 54 of the Act to investment in one house property amounting to Rs. 43,42,500/- and the balance exemption in respect of investment in other four properties has been denied by the AO and corresponding addition has been made under the head long term capital gains. 6. The AR submitted that section 54 of the Act has been amended only w.e.f. 01.04.2014 and before that, investment in multiple houses was permitted. The AR relied upon various decisions in favour of the appellant. The AO was not satisfied with the contentions of the AR and held that exemption u/s 54 of the Act was permitted for investment in multiple units only if those multiple units are amenable to joint enjoyment as a one unit. The ld. CIT(A) affirmed the action of the AO. 7. Aggrieved, the assessee filed appeal before the Tribunal. 8. Heard the arguments of both the parties and perused the material available on record. 9. The ld. AR relied upon the decision of Mumbai ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Finance (No. 2) 01.04.2015. The said amendment reads as follows: '32a. Words constructed, one residential house in India shall be substituted for constructed, a residential house by the Finance (No.2) Act, 2014, with effect from 01.04.2015.' 10. The above-said amendment to Section 54F of the Income Tax Act, which will come into effect only from 01.04.2015, makes it very clear that the benefit of Section 54F of the Income Tax Act will be applicable to constructed, one residential house in India and that clarifies the situation in the present case, i.e. post amendment, viz., from 01.04.2015, the benefit of Section 54F will be applicable to one residential house in India. Prior to the said amendment, it is clear that a residential house would include multiple flats/residential units as in the present case where the assessee has got five residential flats. We may also mention here that all the Authorities below have clearly understood that the agreement signed by the assessee with M/s. Mount Housing Infrastructure Ltd., is that the assessee will receive 43.75% of the built- up area after development, which is construed as one block, which may be one or mor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, which may be constructed, for the sake of convenience, in such a manner as to consist of several units which can, if the need arises, be conveniently and independently used as an independent 'Residence, the requirement of the Section should be taken to have been satisfied. There is nothing in these sections which require the residential house to be constructed in a particular manner. The only requirement is that it should be for the residential use and not for commercial use. If there is nothing in the section which requires that the residential house should be built in a particular manner, it seems to us that the income tax authorities cannot insist upon that requirement. A person may construct a house according to his plans and requirements. Most of the houses are constructed according to the needs and requirements and even compulsions. For instance, a person may construct a residential house in such a manner that he may use the ground floor for his own residence and let out the first floor having an independent entry so that his income is augmented. It is quite common to find such arrangements, particularly postretirement. One may build a house consisting of four bedroom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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