ACIT Vs Smt. Reshmi P. Loyalka (ITAT Kolkata)
The short point of dispute to be resolved in this appeal is two fold:-
a) Whether the reinvestment made by the assessee in 3 residential houses having common amenities, kitchen, common entrance, common house name, common electrical, common storage, common water, common garden, common boundary wall, common guard room, etc would give eligibility to claim exemption u/s 54 of the Act by construing all the three units as a single residential house ?
b) Whether the reinvestment made by the assessee in more than one residential house by making construction in 3 adjacent plots, would make him eligible to claim 100% exemption u/s 54 of the Act prior to amendment in section 54 i.e prior to 1.4.2015 ?
Reinvestment in 3 residential houses having common amenities is eligible for section 54 exemption as single residential house
We find that the ld AO had specifically mentioned that in all the above cases , the flats were located in the same apartment and accordingly the facts of the assessee’s case are not similar to them. In this regard, we find that the assessee had factually purchased 3 adjacent plots of land and made construction thereon by inter connecting the buildings using steel bridges to allow movement within the houses and by having the following common infrastructure :-
Common name and name plate of the residential house of family and it has been named “LOYALKA”, there is only one name plate for the three buildings. The row and buildings is known as residential of “Loyalka”. The neighbors, visitors, postman, courier delivery persons recognizes the three buildings as residence of Loyalkas having common entry and exit gate and Common outer boundary walls. Letters and documents are delivered at one place, and the reception area is common. Common worship place is used by the family members. Common kitchen and dining space is used by all family members. Common garden and greenery lanes are used by family members. Common garden and greenery lanes are there for the common use for the family members. Common car parking lot, common facility for guest, guest room for family guest, common generator and , common Drainage and Rainwater harvesting, common and combined rainwater harvesting water pipes for the group of three buildings, common facility for the domestic helps, connectivity through common passage and arrangements on Ground floor, first floor, terrace. Communication connectivity through common phone lines in the three buildings and common Garbage disposal area.
We have already stated hereinabove that the modified occupancy certificate has been issued to the assessee considering the entire building as a combined single building. Hence even as per the ld AO’s own analogy, the ratio laid down by various high courts in the aforesaid decisions would be squarely applicable to the facts of the instant case and even on that count, the reinvestment made in the sum of Rs 33,45,47,636/- would be eligible for exemption u/s 54 of the Act to the assessee.
Comments are closed.