Assessee, along with his four brothers, had entered into a Joint Development Agreement (JDA) with NCC and assessee received 15 constructed apartment units. Assessee claimed exemption under section 54F in respect of capital gain arising from sale of a residential property and invested same in 15 apartment units. Assessing Officer disallowed claim of deduction under section 54F in respect of 14 apartment units and allowed benefit of investment only on one apartment unit by interpreting a residential house as per provisions of section 54F as existing during relevant assessment year to mean only one residential unit. CIT(A) allowed the claim. On appeal the Tribunal held that amendment to section 54F being prospective in nature, would apply w.e.f. 1-4-2015, and consequently, assessee would be entitled to benefit of section 54F in respect of all units received by assessee pursuant to JDA. (AY. 2008-09)
ACIT v. Narayanappa Ramanna. (2024) 207 ITD 1 (Bang) (Trib.)
S.54F : Capital gains-Investment in a residential house-One house-Position prior to 1-4-2015-Joint Development Agreement (JDA)-14 apartment units-Amendment to section 54F by the Finance No. 2 Act, 2014 makes it clear that with effect from 1-4-2015, deduction would be admissible for one residential unit only by replacing word “a” with “one” and prior to amendment to section 54F, assessee is entitled to benefit of section 54F in respect of all units received by assesse.[S. 45]