ITO, CHENNAI vs. PREETHI JEYAKUMAR, CHENNAI

This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals) -5, Chennai, dated 15.09.2016 and pertains to assessment year 2012-13. The assessee has filed the cross-objection against the very same order.

The only issue arises for consideration in the Revenue’s appeal is deduction claimed by the assessee under Section 54F of the Income-tax Act, 1961 (in short 'the Act').

We have heard both, Shri R. Durai Pandian, the Ld. Departmental Representative and Shri T.N. Seetharaman, the Ld.counsel for the assessee. The Assessing Officer disallowed the claim of the assessee under Section 54F of the Act on the ground that the assessee has multi residential units, therefore, not eligible for deduction under Section 54F of the Act. However, the CIT(Appeals) placing reliance on the judgment of Madras High Court in CIT v. Smt. V.R. Karpagam (2014) 272 CTR 184, found that the residential house would include multiple flats/residential units and amendment made to Section 54F of the Act would be prospective operation, therefore, it is not applicable to the earlier assessment years. In view of this judgment of Madras High Court, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.

Since this Tribunal confirms the order of the CIT(Appeals) with regard to exemption claimed by the assessee under Section 54F of the Act, the cross-objection filed by the assessee becomes infructuous and academic in nature. Accordingly, the cross- objection of the assessee stands dismissed.

In the result, both the appeal of the Revenue and the cross- objection of the assessee are dismissed.