INCOME TAX ACT, 1961

Section 54F

Capital gains - Deduction under section 54F - Three residential units received by assessee -

Assessee had executed a Joint Development Agreement with a builder/developer in respect of his property for being developed into residential apartment. As per the terms thereof, the assessee was entitled to 3 residential flats in lieu of transfer of 60% undivided share of the land to the Developer for which assessee claimed exemption under section 54F. AO alleged that he had reason to believe that assessee's income was eligible to tax had escaped income and disallowed the claim of exemption. CIT(A) disposed off appeal allowing assessee the benefit of exemption under section 54F in respect of 1 residential unit as against the assessee's claim for being allowed exemption under section 54F. Held: Respectfully following the decisions of High Court in the case of CIT v. Smt. K. G. Rukminiamma (2011) 331 ITR 211 (Karn-HC) : 2011 TaxPub(DT) 429 (Karn-HC) and CIT v. V. R. Karpagam (2015) 373 ITR 127 (Mad-HC) : 2014 TaxPub(DT) 4009 (Mad-HC) that assessee was eligible to be allowed for exemption under section 54F in respect of multiple facts, i.e., 3 flats in the same apartment building received by him upon entering into the JDA. Thus AO was accordingly directed to allow the claim of assessee.

Followed:CIT v. Smt. K. G. Rukminiamma (2011) 331 ITR 211 (Karn-HC) : 2011 TaxPub(DT) 429 (Karn-HC) CIT v. V. R. Karpagam (2015) 373 ITR 127 (Mad-HC) : 2014 TaxPub(DT) 4009 (Mad-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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