The Tax PublishersITA No. 3474/Mum/2019
2021 TaxPub(DT) 0553 (Mum-Trib) : (2021) 188 ITD 0603INCOME TAX ACT, 1961
Section 54
The singular 'a residential house' also permits use of plural by virtue of section 13(2) of the General Clauses Act. Therefore, assessee was eligible to claim deduction under section 54 on account of investment made in both the residential properties, especially when amendment made to section 54 by Finance (No.2) Act, 2014 was intended to be specifically applied only prospectively with effect from assessment year 2015-16.
|
Capital gains - Exemption under section 24 - Investment in two residential properties -
Assessee claimed exemption under section 54 by making investment in two separate residential properties. AO restricted exemption of reinvestment of capital gain to one residential house property by taking view of phrase' a residential property' in section 54(1) as only one house property. Held: The context in which the expression 'a residential house' is used in section 54 makes it clear that, it was not the intention of legislation to convey the meaning that it refers to a single residential house. If that was the intention, they would have used the word 'one.' As in the earlier part, the words used are buildings or lands which are plural in number and that is referred to as a residential house, the original asset. An asset newly acquired after the sale of the original asset also can be buildings or lands appurtenant thereto, which also should be 'a residential house'. Therefore the letter 'a' in the context it is used should not be construed as meaning 'singular.' But, being an indefinite article, the said expression should be read in consonance with the other words 'buildings and lands' and, therefore, the singular 'a residential house' also permits use of plural by virtue of section 13(2) of the General Clauses Act. Therefore, assessee was eligible to claim deduction under section 54 on account of investment made in both the residential properties, especially when amendment made to section 54 by Finance Act, 2014 was intended to be specifically applied only prospectively with effect from assessment year 2015-16.
Relied:CIT v. Gunamal Jain (2017) 160 DTR 221 (Mad-HC) : 2017 TaxPub(DT) 1680 (Mad-HC) 3-3-2017), CIT, v. V.R. Karpagam (2014) 373 ITR 127 (Mad-HC) : 2014 TaxPub(DT) 4009 (Mad-HC), CIT, v. Smt. K.G. Rukminiamma (2011) 331 ITR 211 (Karn-HC) : 2011 TaxPub(DT) 429 (Karn-HC) and CIT v. D. Ananda Basappa (2009) 309 ITR 329 (Karn-HC) : 2009 TaxPub(DT) 955 (Karn-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
IN THE ITAT, MUMBAI BENCH
 SUBSCRIBE FOR FULL CONTENT
|