Navneeth Kumar Kothari, CHENNAI V. ITO, CHENNAI

ITA 3335/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7940 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2017
• Appeal Filed By: Assessee
• Bench Allotted: D
• Next Hearing Date: 31-01-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 09-12-2016
• Court: TRIBUNAL
• Department Lawyers: K N DHANDA
• Assessee Lawyers: D ANAND
• Section: 54

Judgement Text

, D/ SMC , IN THE INCOME TAX APPELLATE TRIBUNAL D/SMC BENCH, CHENNAI . , BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ./ I.T.A.NO.3335 /MDS./2016 ( / ASSESSMENT YEAR : 2010-11) SHRI NAVNEETH KUMAR KOTHARI, 72,GODOWN STREET, CHENNAI 600 001. VS. THE ITO, BUSINESS WARD IX(1), CHENNAI. PAN AALPK 3242 R ( / APPELLANT ) ( / RESPONDENT ) ! ' # / APPELLANT BY : MR.D.ANAND, ADVOCATE $% ! ' # / RESPONDENT BY : MR.K.N.DHANDAPANI, JCIT, D.R & ' ' ( ) / DATE OF HEARING : 31.01.2017 *+ ' ( ) /DATE OF PRONOUNCEMENT : 02.02.2017 / O R D E R ITA NO. 3335/MDS/2016 2 PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-13, CHENN AI DATED 09.09.2016 PERTAINING TO ASSESSMENT YEAR 2010-11 . 2. THE MAIN GRIEVANCE OF ASSESSEE IN THIS APPEAL I S WITH REGARD TO CHALLENGING THE NON-GRANT OF DEDUCTION U/S.54 OF TH E ACT IN RESPECT OF TWO FLATS IN A RESIDENTIAL PREMISES INVESTED BY THE ASSESSEE. 3. THE FACTS OF THE ISSUE ARE THAT THE ASSESSEE FI LED RETURN OF INCOME FOR ASSESSMENT YEAR 2010-11 ADMITTING INCOME OF ` 13,14,539/- AFTER CLAIMING EXEMPTION U/S.54 OF THE ACT AT ` 29,47,100/- BY INVESTING IN A PURCHASE OF A NEW HOU SE PROPERTY AND ` 46,50,000/- IN REC BONDS. DURING THE ASSESSMENT PRO CEEDINGS, THE AO VERIFIED PURCHASE DEED AND FOUND THAT THE ASSESS EE HAS PURCHASED TWO FLATS IN A RESIDENTIAL PREMISES OF A SCHEME HAVING FLAT NO.C-9 FOR ` 13,65,000/- AND FLAT NO.C-11 FOR ` 13,38,750/- AND AO HO ISSUED SHOW CAUSE NOTICE TO THE ASSESSEE SAYING THAT EXEMPTION U/S.54 IS AVAILABLE FOR THE PURCHASE OF ONLY ONE R ESIDENTIAL PROPERTY. ITA NO. 3335/MDS/2016 3 THE ASSESSEE COULD NOT PROVIDE ANY PROOF THAT IT WA S A SINGLE RESIDENTIAL UNIT. THEREAFTER, THE AO CARRIED OUT EN QUIRY THROUGH INSPECTOR WHO HAD STATED IN HIS REPORT THAT THE FLA TS ARE TWO SEPARATE RESIDENTIAL UNITS. THEREFORE, THE AO INVOKING THE P ROVISIONS OF THE SECTION 54 ALLOWED EXEMPTION U/S.54 WITH RESPECT TO ONE RESIDENTIAL UNIT ONLY. AGGRIEVED, THE ASSESSEE CARRIED THE APPE AL BEFORE THE LD.CIT(A). ON APPEAL, LD.CIT(A) RELYING ON STATUTE PROVISIONS OF SEC.54, CONFIRMED THE ACTION OF THE AO. AGAINST TH IS, THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. THE SIMILAR ISSUE CAME FOR CONSIDERATION B EFORE THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. V. R.KARPAGAM (373 ITR 127)(MAD.) WHEREIN HELD THAT IF THE ASSESSEE HA S PURCHASED MORE THAN ONE FLAT IN THE SAME BLOCK, EXEMPTION U/S .54F TO BE ALLOWED ON THE TOTAL VALUE OF THE FLATS. IN VIEW O F THE JUDGEMENT OF JURISDICTIONAL HIGH COURT CITED SUPRA, THE ASSESSEE IS ENTITLED FOR ITA NO. 3335/MDS/2016 4 DEDUCTION U/S.54 OF THE ACT IN RESPECT OF INVESTME NTS IN TWO FLATS. ACCORDINGLY, WE ALLOW THE GROUND TAKEN BY THE ASSES SEE. 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWE D. ORDER PRONOUNCED ON 2 ND FEBRUARY, 2017 AT CHENNAI. SD/- ( ) ( CHANDRA POOJARI ) /ACCOUNTANT MEMBER CHENNAI, DATED THE 2 ND FEBRUARY, 2017 . K S SUNDARAM. , ' $(-. /.( / COPY TO: 1 . ! / APPELLANT 3. & 0( () / CIT(A) 5. .3 4 $(5 / DR 2. $% ! / RESPONDENT 4. & 0( / CIT 6. 4 6 7 ' / GF