ITO, CHENNAI V. R.Bhuvaneswari, CHENNAI

ITA 1426/CHNY/2015

• Counselvise Citation: 142621714 RSA 2015
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 11-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: V S JAYAKUMAR
• Section: 54F; 54

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.1426/MDS/2015 ( )( / ASSESSMENT YEAR : 2009-10 THE INCOME TAX OFFICER, NON-CORPORATE WARD 3(1), CHENNAI - 600 034. V. SMT. R. BHUVANESWARI, NEW NO.4, OLD NO.47, NOWROJI ROAD, CHETPET, CHENNAI - 600 031. PAN : AABPB 8461 B (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SH. P. RADHAKRISHNAN, JCIT -.+, / 0 / RESPONDENT BY : SHRI V.S. JAYAKUMAR, ADVOCATE 1 / 2% / DATE OF HEARING : 10.09.2015 3') / 2% / DATE OF PRONOUNCEMENT : 20.11.2015 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-4, CHENNAI , DATED 25.03.2015 AND PERTAINS TO ASSESSMENT YEAR 2009-10. THE ONLY 2 I.T.A. NO.1426/MDS/15 ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO CL AIM OF DEDUCTION UNDER SECTION 54F OF THE INCOME-TAX ACT, 1961 (IN S HORT 'THE ACT'). 2. SH. P. RADHAKRISHNAN, THE LD. DEPARTMENTAL REPRE SENTATIVE, SUBMITTED THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE SOLD IMMOVABLE PROPERTY AND ACQUIRED THREE RESIDENT IAL UNITS IN THE SAME APARTMENT. THE ASSESSEE CLAIMED DEDUCTION UND ER SECTION 54F OF THE ACT. HOWEVER, THE ASSESSING OFFICER RES TRICTED THE CLAIM OF THE ASSESSEE TO ONE RESIDENTIAL UNIT AND FOUND T HAT THE ASSESSEE IS NOT ELIGIBLE FOR DEDUCTION EITHER UNDER SECTION 54 OR 54F OF THE ACT IN RESPECT OF THE OTHER TWO RESIDENTIAL UNITS. HOW EVER, THE CIT(APPEALS), BY FOLLOWING THE ORDER OF THIS TRIBUN AL IN I.T.A. NO. 907/MDS/2001 DATED 28.07.2006, ALLOWED THE CLAIM OF THE ASSESSEE UNDER SECTION 54 IN RESPECT OF THE THREE RESIDENTIA L UNITS OF THE ASSESSEE. REFERRING TO PROVISIONS OF SECTION 54 OF THE ACT, THE LD. D.R. SUBMITTED THAT THE ASSESSEE CANNOT HAVE MORE T HAN ONE RESIDENTIAL HOUSE FOR THE PURPOSE OF CLAIMING DEDUC TION UNDER SECTION 54 OF THE ACT. THEREFORE, THE CIT(APPEALS) MAY NOT BE CORRECT IN ALLOWING THE CLAIM OF THE ASSESSEE. 3 I.T.A. NO.1426/MDS/15 3. ON THE CONTRARY, SHRI V.S. JAYAKUMAR, THE LD. CO UNSEL FOR THE ASSESSEE, SUBMITTED THAT AN IDENTICAL ISSUE CAME BE FORE THE MADRAS HIGH COURT IN CIT V. V.R. KARPAGAM (2014) 90 CCH 34 AND SUBMITTED THAT THE WORD ONE RESIDENTIAL HOUSE IN I NDIA WAS DELETED BY FINANCE ACT, 2014 WITH EFFECT FROM 01.04.2015 AN D THE PARLIAMENT INTRODUCED A RESIDENTIAL HOUSE INSTEAD OF ONE RESIDENTIAL HOUSE. THE CIT(APPEALS) BY FOLLOWING THE BINDING JUDGMENT OF THE MADRAS HIGH COURT IN V.R. KARPAGAM (SUPRA), ALLOWED THE CLAIM OF THE ASSESSEE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE AMENDMENT MADE BY PARLIAMENT BY FINANCE ACT, 2014 WAS CONSIDE RED BY MADRAS HIGH COURT AND IT WAS FOUND THAT A RESIDENT IAL HOUSE WOULD INCLUDE MULTIPLE FLATS/RESIDENTIAL UNITS. MOREOVER , A CO-ORDINATE BENCH OF THIS TRIBUNAL IN I.T.A. NO. 907/MDS/2001 D ATED 28.07.2006 FOUND THAT THERE WAS NO BAR IN ACQUIRING MORE THAN ONE RESIDENTIAL UNIT FOR CLAIMING DEDUCTION UNDER SECTION 54 OF THE ACT. IN FACT THE CIT(APPEALS) BY FOLLOWING THE ORDER OF THE CO-ORDIN ATE BENCH OF THIS TRIBUNAL ALLOWED THE CLAIM OF THE ASSESSEE, THEREFO RE, THIS TRIBUNAL 4 I.T.A. NO.1426/MDS/15 DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED ON 20 TH NOVEMBER, 2015 AT CHENNAI. SD/- SD/- (. !'# ! ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 20 TH NOVEMBER, 2015. KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 92 () /CIT(A)-4, CHENNAI 4. 1 92 /CIT-V, CHENNAI 5. 7: -2 /DR 6. ( ; /GF.