Delhi HC: Woman's Right to a Shared Household Does Not Allow Indefinite Occupation of In-Laws' Home  ||  Delhi HC: Director Disputes in a Company Do Not Qualify as Genuine Hardship to Delay ITR Filing  ||  Delhi HC: ECI Cannot Resolve Internal Disputes of Unrecognised Parties; Civil Court Must Decide  ||  Bombay High Court: Senior Citizens Act Cannot be Misused to Summarily Evict a Son  ||  Chhattisgarh HC: Service Tax Refund Can't Be Denied on Limitation When Payment Was Made During Probe  ||  Supreme Court: If Tribunal Ends Case For Unpaid Fees, Parties Must Seek Recall Before Using S.14(2)  ||  SC: Article 226 Writs Jurisdiction Cannot be Used to Challenge Economic or Fiscal Reforms  ||  Supreme Court: Hostile Witness Testimony Can't Be Discarded; Consistent Parts Remain Valid  ||  Supreme Court: GPF Nomination in Favour of a Parent Becomes Invalid Once the Employee Marries  ||  Supreme Court: Candidate Not Disqualified if Core Subject Studied Without Exact Degree Title    

Halesh K. C, Bangalore vs. Income Tax Officer - (Income Tax Appellate Tribunal) (24 Feb 2021)

An independent building can have a number of residential units and it will not lose the character of one residential house

MANU/IL/0061/2021

Direct Taxation

The appeal filed by the assessee is directed against the order passed by Learned Commissioner of Income Tax [CIT(A)], Bengaluru and it relates to the assessment year 2015-16. The solitary issue urged in present appeal is whether the learned CIT(A) was justified in rejecting the claim for deduction under Section 54F of the Income-Tax Act,1961 (IT Act).

The assessee along with other family members had sold an immovable property on 20th August, 2015. The assessee worked out long term capital gain of Rs.1,50,20,000 and claimed deduction of entire amount under Section 54F of the Act. The AO noticed that, the assessee had received a building by way of gift on 13th August, 2015 and the said building consisted of ground floor, first floor and second floor. The AO also deputed his inspector to physically inspect the property. The Inspector reported that, the Ground floor is having a garage and one residential unit; first floor is having two 1BHK flats and second floor is having 2 single units. The AO, accordingly, took the view that, each of the unit is separate house. Since deduction under Section 54F of the Act is not permitted, if the assessee is having more than one house property, the AO rejected the claim for deduction under Section 54F of the Act.

Identical view has been expressed by co-ordinate bench in the case of Shri Chandrashekar Veerabhadraiah vs. ITO that, an independent building can have a number of residential units and it will not lose the character of "one residential house. Accordingly, present Tribunal is unable to agree with the view taken by the tax authorities that each floor of the individual house/each portion in a floor is separate house property. Accordingly, the order passed by Learned CIT(A) is set aside. Tribunal held that, the house property received by the assessee is "one residential house" only within the meaning of section 54F of the Act. Accordingly, the reasoning given by the AO to reject the claim for deduction under Section 54F is not justified. The appeal of the assessee is allowed.

Tags : DEDUCTION   PROVISION   APPLICABILITY  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved