9911796707
TMI Blog2024 (5) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The assessee is an individual and filed the return of income for assessment year 2016-17 declaring total income of Rs. 5,43,56,720/-. The case was selected for scrutiny and the statutory notices that duly served on the assessee. The Assessing Officer during the course of assessment noticed that the assessee has received a sum of Rs. 8,70,00,000/- as his share of 20% in the sale of land jointly owned with other co-owners. It is further noticed that the assessee had claimed exemption u/s 54F of the Act for Rs. 3 crores towards investment in a new residential house property and also exemption u/s 54EC of Rs. 54,00,000/- towards investment in NHAI Bonds. The Assessing Officer called on the assessee to submit explanations as to how he had fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Aggrieved the assessee filed its appeal before the Ld. CIT(A) who upheld the order of the AO. 4. Before us, the Ld. AR submitted that the assessee though jointly owns 16.67% in the six flats he is actually occupying only one flat since each of six flats is earmarked a particular family members. The Ld. AR also submitted that the Co-ordinate Bench of the Tribunal in one of the other co-owner's case namely Shri Sainul Abedin Ghaswala v. CIT(A) (ITA No. 545/Mum/2023) dated 22.05.2023 has held that the said assessee is entitled for exemption u/s 54F of the Act by placing reliance on the decision of the Hon'ble Madras High Court in the case of Dr. P.K. Vasanthi Rangarajan v. CIT (2012) 252 CTR 0336. The Ld. AR further submitted that the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, one residential house in India (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,- (a) if the cost of the new asset is not less than the net consideration in respect of the original asset, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p of 16.67% in 6 flats amounts to owning more than one residential house in assessee's case and that the assessee is the "owner" of the 6 flats jointly. It is an admitted fact that there is no clear demarcation with regard to the Flats jointly owned, though as per the submissions of the assessee each flat is occupied by each of the joint owners. Therefore it cannot be said that one of the joint owners i.e.the assessee in this case is the absolute owner of the 6 flats and no individual person on his own can sell the entire property of all 6 flats. At best the joint owner can sell his share of interest in the property but the property would still continue to be owned by the rest of the co-owners. Joint ownership is therefore different fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e revenue has placed heavy reliance on the decision of the Karnataka High Court in the case of M J Siwani (supra) where the Hon'ble High Court has held that in terms of provisions of section 54F, where assessee on date of sale of long term capital asset owns a residential house even jointly with another person, his claim for deduction of capital gain arising from sale of asset has to be rejected. It is also submitted by the ld DR that the SLP against the order of the Hon'ble High Court is dismissed by the Hon'ble Supreme Court. However we notice that a contrary view is held by the Madras High Court in the case of Dr. P.K. Vasanthi Rangarajan (supra) where it is held that Joint ownership of a second property is no bar to exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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