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In the result, the order passed by the assessing officer and Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal insofar as it deprives the assessee of the benefit of exemption under Section 54(1) of the Act are hereby quashed and the assessee is held entitled to benefit of exemption under Section 54(1) of the Act.

Shanti Prime Publication Pvt. Ltd.

Sec. 54 of Income Tax Act, 1961 - Exemption - The issue, which arises for consideration in this appeal is whether the assessee is entitled to claim exemption under Section 54 of the Act as he had purchased more than two houses. With a view to give definite meaning to the expression 'a residential house', the provisions of Section 54(1) were amended with an object to restrict the plurality to mean singularity by substituting the word 'a residential house' with the word 'one residential house'. The aforesaid amendment came into force with effect from 01.04.2015. Thus, the contention of the revenue that the assessee is not entitled to benefit of exemption under Section 54(1) of the Act in the facts of the case does not deserve acceptance. In the result, the order passed by the AO and CIT(A) and the ITAT insofar as it deprives the assessee of the benefit of exemption under Section 54(1) of the Act are quashed and the assessee is held entitled to benefit of exemption under Section 54(1) of the Act. - ARUN K THIAGARAJAN V/s CIT - [2020] 272 TAXMAN 235 (KARN)