S. 54F : Capital gains- Investment in a residential house-Co-owner of more than one house-Eligible for deduction-Precedent-When there are conflicting decisions of High Courts the view in favour of the assessee has to be followed. [S. 45, 54]
The assessee is an individual, claimed deduction under section 54F of the income-tax Act. The Assessing Officer disallowed the exemption on the ground that the assessee owned interest in more than one residential properties and therefore, he was not entitled for deduction u/s 54F of the Act. The Assessing Officer relied on the decision in M.J. Siwani v. CIT [2015] 53 taxmann.com 318 (Karn)(HC). On appeal, the CIT(A) upheld the finding of the Assessing Officer. On further appeal the Tribunal held that the assessee is eligible for deduction relied on Ashok G Chauhan v. ACIT (TAT Mumbai A Bench) ITA No 1309/Mum/2016, DCIT v. Shri Dawood Abdulhussain Gandhi (ITAT “F’ Bench Mumbai ITA No 3788/Mum/2016, ITO v. Rasiklal N Satra [TAT “A “ Bench Mumbai (98 ITD 0335 and the Judgement of Madras High Court in Dr. P.K. Vasanthi Rangarajan v. CIT (2012) 252 CTR 336 (Mad)(HC). The Tribunal also held that when there are conflicting decisions of High Courts the view in favour of the assessee has to be taken. CIT v. Vegetable Products Ltd. 88 ITR192. (SC). Accordingly the appeal of the assessee was allowed. (ITA No. 545/M/2023 dt. 22-5-2023)(AY. 2016-17)
Zainul Abedin Ghaswala v. NFAC (Mum.)(Trib.) www.itatonline .org
[Coram : Hon’ble Shri Om Prakash Kant (AM) and H0n’ble Ms. Kavitha Rajagopal (JM)]