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| The Tax Publishers2019 TaxPub(DT) 2283 (Mad-HC) : (2019) 413 ITR 0189 : (2019) 308 CTR 0364 : (2019) 263 TAXMAN 0713 INCOME TAX ACT, 1961
Section 54
The word 'a' employed can include plural residential houses also in section 54 prior to its amendment and such interpretations would not change merely because assessee-purchased new assets in the form of residential houses at different addresses which would depend upon the facts and circumstances of each case, accordingly, assessee was entitled to benefit under section 54 for entire investment in the properties.
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Capital gains - Exemption under section 54 - Investment in two residential houses located at different addressed -
Assessee-HUF invested sale proceeds of original asset towards purchase of two residential houses located at different addresses. AO held that assessee was entitled to exemption under section 54 with respect to investment made in one residential house only. Held: If the word 'a' as employed under section 54 prior to its amendment and substitution by the words 'one' with effect from 1-4-2015 could not include plural units of residential houses, there was no need to amend the said provisions by Finance Act (No. 2), 2014 with effect from 1-4-2015 which the Legislature specifically made it clear to operate only prospectively from assessment year 2015-16. Accordingly, the word 'a' employed can include plural residential houses also in section 54 prior to its amendment and such interpretations would not change merely because assessee-purchased new assets in the form of residential houses at different addresses which would depend upon the facts and circumstances of each case, accordingly, assessee was entitled to benefit under section 54 for entire investment in the properties.
Applied:CIT v. D.Ananda Basappa (2009) 309 ITR 329 (Karn) : 2009 TaxPub(DT) 955 (Karn-HC) and CIT v. Khoobchand M. Makhija (2014) 43 Taxmann.com 143 (Karn).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2005-2006
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