Case Law Details
Late Susan Cherian Vs ITO (ITAT Bangalore)
The issue under consideration is whether the capital gain deduction benefit is restricted to only one residential property under section 54F of the Income Tax Act?
In the present case, as per JDA registered on 23/05/2005, assessee received 35% of total built up area, i.e, 35% of apartments constructed along with 35% of car parking and 35% of terrace and garden rights earmarked for private use as against common use in consideration for transferring 65% of undivided interest. Assessee claimed exemption under section 54F on the value of the 35% of constructed area which was denied by Ld. AO and confirmed by Ld. CIT(A). Before us assessee urges that, she is eligible for exemption under section 54F on the 35% of constructed area received in view of the land she had parted with.
ITAT states that, in decisions of Hon’ble Madras High Court, Hon’ble Karnataka High Court has categorically held that amendment to section 54F with regard to ‘a” by Finance (No.2) Act, 2014 w.e.f. 01/04/2015 withdrawing deduction for more than one flat (residential house). Courts have consistently held that post amendment benefit of section 54F will be applicable only to one residential house in India whereas prior to the amendment residential house would include multiple residential house/units. In view of consistent view taken by jurisdictional High Court, as well as other High Courts, we are of the opinion that assessee is entitled to deduction under section 54F of the act in respect of 35% of constructed property received by her. Accordingly, this ground raised by assessee stands allowed.
FULL TEXT OF THE ITAT JUDGEMENT
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