Smt. Minal Nayan Shah

[2019] 111 taxmann.com 516 (Ahmedabad – Trib.)

Position prior to 1-4-2015: Multiple residential units are included within sphere of section 54F

Section 54F, read with section 263, of the Income-tax Act, 1961 – Capital gains – Exemption of, in case of investment in residential house (Revision) – Assessment year 2014-15 – During year, assessee individual had sold an immovable property and invested sale consideration for purchase of entire block (consisting of 3 residential units located at different floors of same building) of residential project within specified time – Accordingly, assessee claimed exemption under section 54F – Same was allowed – Principal Commissioner invoked jurisdiction under section 263 on grounds that entire super structure of block in residential project comprised of 3 independent units could not be regarded as ‘a residential house’ as contemplated under section 54F and, hence, assessee was not eligible for claim of deduction under said section – Whether multiple residential units are included within sphere of section 54F; therefore, Assessing Officer was justified in allowing exemption under section 54F to assessee – Held, yes – Whether, therefore, impugned exercise of revisional jurisdiction under section 263 was unjustified – Held, yes

Words ‘a residential house’ as occurring in section 54F of the Income-tax Act, 1961