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| The Tax Publishers2020 TaxPub(DT) 4899 (Bang-Trib) INCOME TAX ACT, 1961
Section 54F
For concerned assessment year 2010-11, word 'a' appearing in section 54F should into be construed in singular, but was to be understood in plural and therefore, assessee was eligible for exemption under section 54F on all ten flats received by it in lieu of land that assessee had parted with.
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Capital gains - Deduction under section 54F - Assessee received 10 flats as his share of built-up area under JDA - AO allowed assessee's claim under section 54F in respect of one of the flats only
Assessee received 10 flats as his share of built-up area under Joint development agreement (JDA) and claim deduction under section 54F on all the 10 flats. AO held that claim of assessee under section 54F for all ten flats could not be admitted, but however, assessee would be entitled to benefit of section 54F in respect of one single flat with largest area. Held: Amendment was made to section 54F with regard to word 'a' by Finance (No. 2) Act, 2014 with effect from only from 1-4-2015 withdrawing deduction for more than one flat (residential house). Post-amendment, viz., from 1-4-2015, benefit of section 54F would be applicable to one residential house in India. However, prior to said amendment, a residential house would include multiple flats/residential units. Accordingly, for the year under consideration, word 'a' appearing in section 54F should into be construed in singular, but was to be understood in plural and therefore, assessee was eligible for exemption under section 54F on all ten flats received by it in lieu of land that assessee had parted with.
Applied:CIT v. Gumanmal Jain (2017) 80 Taxmann.com 21 (Mad) : 2017 TaxPub(DT) 1680 (Mad-HC) and CIT v. K. G. Rukminiamma 331 ITR 221 (Karn).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
IN THE ITAT, BANGALORE 'A' BENCH
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