Case Law Details
Dinesh Chandra Dutta Bhargava Vs DCIT (ITAT Agra)
The only question to be adjudicated in the instant case is whether the assessee is entitled for deduction u/s. 54/54F of the Act in the attending circumstances of the case or not and whether the changed legal position of section 54, as noted by ld. CIT(A), is applicable in the assessment year under consideration or not. It is not in dispute that the amendment in section 54 was made w.e.f. 01.04.2015, which does not fall within the assessment year under consideration. There is nothing on record from the side of Revenue to justify that the said amendment was made applicable with retrospective effect. In such circumstances. As regards the disallowance on the premise of investment in two residential flats, we find that in the case of V.R. Karpaam (Smt.) v. ITO (2013) 143 ITD 126 (Chennai)(Trib.), Tribunal held that ‘a residential house’ in the context could not be construed as a singular and the meaning given in section 54 would apply to section 54F also. New asset defined in section 54F as ‘a residential house’ has to be understood in plural. It is not necessary that all residential units should be single door number allotted. In this decision, the Tribunal, following the ratio in CIT v. K.G. Rukminiamma (2011) 331 ITR 211 (Karn.)(HC), allowed the claim of assessee. In view of these decisions, we find no justification to discard the claim made by the assessee u/s. 54 of the Act in the present case. We are, therefore, not inclined to sustain the impugned order.
FULL TEXT OF THE ORDER OF ITAT AGRA
This appeal by the assessee for the assessment year 2915-16 is directed against the order dated 18.09.2018 passed by ld. CIT(A), Aligarh, challenging the impugned order on the ground that the ld. CIT(A) while sustaining the disallowance of assessee’s claim made u/s. 54/54F of the Act by Assessing Officer on the ground that the Long term capital gains earned by the assessee was invested in purchase of two houses/flats instead of one residential unit.
2. Brief facts of the case are that the assessee sold a residential house in Agra on 21.04.2014 for Rs.1,20,00,000/- having the value for the purpose of stamps at Rs.1,22,78,000/-. Out of the long term capital gains, the assessee invested Rs.15,00,000/- in specified bonds u/s. 54EC and also invested a sum of Rs.43,85,000/- in purchase of a flat in JNC Princes Park, Khasra No. 519, Mohiuddinpur, Kanawani, Noida and Rs. 48,90,000/- in another flat in Desire Residency, Khasra No. 520, Mohiuddinpur, Kanawani, Noida. The Assessing Officer observed that deduction u/s. 54 could be allowed only in respect of one flat.
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