G,Venkatesalu, CHENNAI V. ACIT, CHENNAI

ITA 658/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6045 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 17-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN
• Assessee Lawyers: ANAND BABUNATH
• Section: 54F

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL , SMC B BENCH, CHENNAI . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NOS.658/MDS/2017 ( / ASSESSMENT YEAR: 2005-06) SHRI G. VENKATESALU, 3/5, CHENGALVARAYAN STREET, SHENOY NAGAR, CHENNAI 600 030. VS THE ACIT, NON-CORPORATE WARD 10, CHENNAI 34. PAN: AADPV8847K ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI ANAND BABUNATH, FCA /RESPONDENT BY : SHRI B. SAGADEVAN, JCIT /DATE OF HEARING : 05.10.2017 !' /DATE OF PRONOUNCEMENT : 12.10.2017 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEA LS)-12, CHENNAI DATED 22.08.2016 IN ITA NO.188/CIT(A)-12/20 13-14 FOR THE ASSESSMENT YEAR 2005-06 PASSED U/S.250(6) R.W.S .143(3) & 147 OF THE ACT. 2 ITA NO.658/MDS/2017 2. THE APPEAL WAS FILED BY THE ASSESSEE WITH A DE LAY OF 143 DAYS. THE LD. AR SUBMITTED THAT THE DELAY HAD OCCU RRED SINCE THE ASSESSEE WAS NOT WELL DUE TO OLD AGE. THEREFORE THE LD. AR PLEADED THAT THE DELAY MAY BE CONDONED. THE LD. DR STRONGLY OBJECTED TO THE SUBMISSION OF THE LD. AR. AFTER HE ARING BOTH SIDES, IM OF THE CONSIDERED VIEW THAT THE DELAY OF 143 DAYS IN FILING THE APPEAL SHOULD BE CONDONED BECAUSE OF THE GENUINE REASON OF ILLNESS DURING OLD AGE. THEREFORE I HERE BY CONDONE THE DELAY AND PROCEED TO HEAR THE APPEAL ON MERITS. 3. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN HIS A PPEAL, HOWEVER THE CRUX OF THE ISSUE IS THAT THE LD.CIT(A) HAS ERRED IN NOT GRANTING THE BENEFIT OF SECTION 54F OF THE ACT WHILE COMPUTING THE CAPITAL GAIN OF THE ASSESSEE. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL, FILED HIS RETURN OF INCOME FOR THE ASSE SSMENT YEAR 2005-06 ON 31.03.2006 ADMITTING TOTAL INCOME OF RS. 2,62,417/-. INITIALLY THE RETURN WAS PROCESSED U/S.143(1) OF TH E ACT AND SUBSEQUENTLY THE CASE WAS REOPENED U/S.147 WITH THE APPROVAL OF THE COMMISSIONER OF INCOME TAX-X, CHENNAI BECAUS E THE 3 ITA NO.658/MDS/2017 ASSESSEE HAD CLAIMED EXEMPTION U/S.54F THOUGH HE HA D MULTIPLE RESIDENTIAL PROPERTY AND FINALLY ASSESSMEN T ORDER WAS PASSED U/S.143(3) R.W.S 147 OF THE ACT ON 07.12.201 1, WHEREIN THE LD.AO DISALLOWED THE CLAIM OF DEDUCTION U/S.54F OF THE ACT BECAUSE THE ASSESSEE OWNED MORE THAN ONE RESIDENTIA L HOUSE PROPERTY AS PER HIS STATEMENT OF INCOME. ON APPEAL THE LD.CIT(A) CONFIRMED THE ORDER OF THE LD.AO. THE FI NDING OF THE LD.CIT(A) FOR ARRIVING AT HIS CONCLUSION IS THAT TH E ASSESSEE OWNED THREE RESIDENTIAL UNIT IN HIS RESIDENTIAL PLO T NO.5, CHENGALVARAYAR STREET, SHENOY NAGAR CONSISTING OF A RESIDENTIAL UNIT IN THE GROUND FLOOR, FIRST FLOOR & SECOND FLOO R. 5. AT THE OUTSET, I FIND THAT THE ASSESSEE HAD CONS TRUCTED ONE BUILDING IN PLOT NO.5, CHENGALVARAYAR STREET, SHENO Y NAGAR CONSISTING OF GROUND FLOOR, FIRST FLOOR & SECOND FL OOR. THE ENTIRE BUILDING IS ONE RESIDENTIAL BUILDING SUB-DIVIDED IN TO THREE PARTS FLOOR-WISE, THEREFORE EVEN THOUGH IT IS USED FOR RE SIDENTIAL PURPOSE AS THREE UNITS, IT CANNOT BE CONSIDERED AS THREE INDEPENDENT HOUSES. THE ENTIRE BUILDING HAS TO BE TREATED AS ONE RESIDENTIAL UNIT. THUS IN THE CASE OF THE ASSE SSEE, HE DOES NOT OWN MORE THAN ONE RESIDENTIAL UNIT, HENCE THE A SSESSEE IS 4 ITA NO.658/MDS/2017 ENTITLED FOR BENEFIT OF SECTION 54F OF THE ACT. FO R THE ABOVE SAID REASONS I HEREBY DIRECT THE LD.AO TO GRANT THE BENE FIT OF SECTION 54F TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED ON 12 TH OCTOBER, 2017 AT CHENNAI. SD/- ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER #$ /CHENNAI, %& /DATED 12 TH OCTOBER, 2017 RSR & () *) /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. - ( )/CIT(A) 4. - /CIT 5. )./ 0 /DR 6. /1 /GF