N Ramaswamy, Chennai v. ITO, Non Corp Ward 2(3), Chennai

ITA 925/CHNY/2019 | 2014-2015
Pronouncement Date: 06-12-2019 | Result: Allowed
Expert Summary: Assessee entered into an agreement for perpetual lease for unlimited period and claimed exemption under section 54F. Assessing Officer (AO) allowed the exemption claimed by the assessee. However, the Principal Commissioner (PCIT) observed that the assessee had acquired the property by way of perpetual lease deed agreement and therefore, it cannot be considered as absolute purchase of the property for claiming exemption under Section 54F of the Act. Thus, he revised the order of AO and disallowed the exemption claimed by assessee.On appeal before the Tribunal, it held that a bare reading of section 2(47) shows that the agreement or arrangement which has effect of transferring or enabling the enjoyment of immovable property, has to be considered as transfer. Furthermore, section 269UA(2) of the Act clearly says that any lease for a term of more than 12 years including the possession of property has to be construed as transfer.Since the assessee had acquired the residential house by means of perpetual lease for more than 12 years, it had to be treated as acquisition of property within the meaning of section 54F. Therefore, assessee was entitled to exemption under section 54F and allowed the appeal of the assessee.

Appeal Details

RSA Number 92521714 RSA 2019
Assessee PAN AAHHN2192R
Bench Chennai
Appeal Number ITA 925/CHNY/2019
Duration Of Justice 8 month(s) 1 day(s)
Appellant N Ramaswamy, Chennai
Respondent ITO, Non Corp Ward 2(3), Chennai
Appeal Type Income Tax Appeal
Pronouncement Date 06-12-2019
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 06-12-2019
Last Hearing Date 25-11-2019
First Hearing Date 25-11-2019
Assessment Year 2014-2015
Appeal Filed On 04-04-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH CHENNAI ... . ! # !$ BEFORE SHRI N.R.S. GANESAN JUDICIAL MEMBER AND SHRI S. JAYARAMAN ACCOUNTANT MEMBER ./ ITA NO.925/CHNY/2019 & '& / ASSESSMENT YEAR : 2014-15 SHRI N. RAMASWAMY KARTHA OF N. RAMASWAMY (HUF) D-2 POWER APARTMENTS 47 KODAMBAKKAM HIGH ROAD T. NAGAR CHENNAI - 600 017. PAN : AAHHN 2192 R V. THE INCOME TAX OFFICER NON CORPORATE WARD 2(3) CHENNAI - 600 034. ()*/ APPELLANT) (+ )*/ RESPONDENT) )* - . / APPELLANT BY : SHRI M. NARAYANAN RETD. ADDL.CIT + )* - . / RESPONDENT BY : SHRI S. BHARATH CIT / - 0# / DATE OF HEARING : 25.11.2019 12' - 0# / DATE OF PRONOUNCEMENT : 06.12.2019 / O R D E R PER N.R.S. GANESAN JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE PRINCIPAL COMMISSIONER OF INCOME TAX -1 CHENNA I DATED 12.02.2019 FOR THE ASSESSMENT YEAR 2014-15 PASSED UNDER SECTION 263 OF THE INCOME-TAX ACT 1961 (IN SHORT 'THE ACT' ). 2 I.T.A. NO.925/CHNY/19 2. SHRI M. NARAYANAN THE LD. REPRESENTATIVE FOR TH E ASSESSEE SUBMITTED THAT THE ASSESSING OFFICER ALLOWED THE CL AIM OF EXEMPTION UNDER SECTION 54F OF THE ACT. HOWEVER THE PRINCIP AL COMMISSIONER FOUND THAT THE ASSESSEE ACQUIRED THE PROPERTY FROM M/S MAHINDRA RECIDENTIAL DEVELOPERS LIMITED BY WAY OF PERPETUAL LEASE DEED AGREEMENT. THEREFORE IT CANNOT BE CONSTRUED AS OU TRIGHT / ABSOLUTE PURCHASE OF THE PROPERTY BY CLAIMING EXEMPTION UNDE R SECTION 54F OF THE ACT. THE LD. REPRESENTATIVE CLARIFIED THAT THE LEASE WAS FOR UNLIMITED PERIOD. THE PERPETUAL LEASE HOLDER / ASS ESSEE HAS ENDURING RIGHT TO POSSESS AND ENJOY THE PROPERTY AS RESIDENTIAL HOUSE FOR UNLIMITED PERIOD. ACCORDING TO THE LD. R EPRESENTATIVE THE ASSESSEE ALSO HAS THE RIGHT TO TRANSFER THE LEASE / POSSESSION TO OTHER PERSON IN THE OPEN MARKET. THEREFORE ACCORD ING TO THE LD. REPRESENTATIVE BY VIRTUE OF SECTION 2(47)(VI) READ WITH SECTION 269UA(2)(III)(F) OF THE ACT IT HAS TO BE CONSTRUED AS ACQUISITION OF THE PROPERTY HENCE THE ASSESSEE IS ELIGIBLE FOR E XEMPTION UNDER SECTION 54F OF THE ACT. 3. ON THE CONTRARY SHRI S. BHARATH THE LD. DEPART MENTAL REPRESENTATIVE SUBMITTED THAT ADMITTEDLY THE ASSES SEE ENTERED INTO AN AGREEMENT FOR PERPETUAL LEASE FOR UNLIMITED PERI OD WITH M/S MAHINDRA RECIDENTIAL DEVELOPERS LIMITED AND THE PRO PERTY WAS NOT 3 I.T.A. NO.925/CHNY/19 PURCHASED OUTRIGHT BY THE ASSESSEE. ACCORDING TO T HE LD. D.R. SECTION 54F BEING A BENEFICIAL PROVISION ONLY FOR PURCHASE OF PROPERTY BY MEANS OF OUTRIGHT SALE THE EXEMPTION T HEREIN CAN BE CLAIMED. THEREFORE ACCORDING TO THE LD. D.R. THE PRINCIPAL COMMISSIONER HAS RIGHTLY FOUND THAT THERE WAS AN ER ROR IN THE ORDER OF ASSESSMENT WHICH IS PREJUDICIAL TO THE INTEREST S OF REVENUE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS RIGHTLY SUBMITTED BY THE LD. REPRESENTATIVE FOR THE ASSESSE E AND THE LD. D.R. THE ASSESSING OFFICER ALLOWED THE EXEMPTION A S CLAIMED BY THE ASSESSEE UNDER SECTION 54F OF THE ACT. IT IS N OT IN DISPUTE THAT THE ASSESSEE ENTERED INTO AN AGREEMENT FOR PERPETUA L LEASE FOR AN UNLIMITED PERIOD WITH M/S MAHINDRA RESIDENTIAL DEVE LOPERS LIMITED. THE ISSUE ARISES FOR CONSIDERATION IS WHETHER THE A SSESSEE HAS TO PURCHASE THE PROPERTY ABSOLUTELY FOR CLAIMING EXEMP TION UNDER SECTION 54F OF THE ACT OR PERPETUAL LEASE FOR UNLIM ITED PERIOD WOULD AMOUNT TO PURCHASE OF THE PROPERTY FOR CLAIMING EXE MPTION UNDER SECTION 54F OF THE ACT. WE HAVE GONE THROUGH THE P ROVISIONS OF SECTION 54F OF THE ACT WHICH READS AS FOLLOWS:- 4 I.T.A. NO.925/CHNY/19 54F. CAPITAL GAIN ON TRANSFER OF CERTAIN CAPITAL A SSETS NOT TO BE CHARGED IN CASE OF INVESTMENT IN RESIDEN TIAL HOUSE (1) SUBJECT TO THE PROVISIONS OF SUB-SECTION (4) WH ERE IN THE CASE OF AN ASSESSEE BEING AN INDIVIDUAL OR A HINDU UNDIVIDED FAMILY THE CAPITAL GAIN ARISES FROM THE TRANSFER O F ANY LONG-TERM CAPITAL ASSET NOT BEING A RESIDENTIAL HOUSE (HEREA FTER IN THIS SECTION REFERRED TO AS THE ORIGINAL ASSET) AND THE ASSESSEE HAS WITHIN A PERIOD OF ONE YEAR BEFORE OR WO YEARS AFTE R THE DATE ON WHICH THE TRANSFER TOOK PLACE PURCHASED OR HAS WIT HIN A PERIOD OF THREE YEARS AFTER THAT DATE CONSTRUCTED ONE RES IDENTIAL HOUSE IN INDIA (HEREAFTER IN THIS SECTION REFERRED TO AS THE NEW ASSET) THE CAPITAL GAIN SHALL BE DEALT WITH IN ACC ORDANCE WITH THE FOLLOWING PROVISIONS OF THIS SECTION THAT IS TO SA Y (A) IF THE COST OF THE NEW ASSET IS NOT LESS THAN T HE NET CONSIDERATION IN RESPECT OF THE ORIGINAL ASSET THE WHOLE OF SUCH CAPITAL GAIN SHALL NOT BE CHARGED UNDER SECTION 45 ; (B) IF THE COST OF THE NEW ASSET IS LESS THAN THE N ET CONSIDERATION IN RESPECT OF THE ORIGINAL ASSET SO MUCH OF THE CA PITAL GAIN AS BEARS TO THE WHOLE OF THE CAPITAL GAIN THE SAME PRO PORTION AS THE COST OF THE NEW ASSET BEARS TO THE NET CONSIDERATIO N SHALL NOT BE CHARGED UNDER SECTION 45 : PROVIDED THATNOTHING CONTAINED IN THIS SUB-SECTION SHALL APPLY WHERE(A) THE ASSESSEE (I) OWNS MORE THAN ONE RESI DENTIAL HOUSE OTHER THAN THE NEW ASSET ON THE DATE OF TRA NSFER OF THE ORIGINAL ASSET ; OR(II) PURCHASES ANY RESIDENTIAL H OUSE OTHER THAN THE NEW ASSET WITHIN A PERIOD OF ONE YEAR AFTER TH E DATE OF TRANSFER OF THE ORIGINAL ASSET ; OR(III) CONSTRUCTS ANY RESIDENTIAL HOUSE OTHER THAN THE NEW ASSET WITHIN A PERIOD OF THREE YEARS AFTER THE DATE OF TRANSFER OF THE ORIGINAL ASSET ; AND(B) THE INCOME FROM SUCH RESIDENTIAL HOUSE OTHER THAN THE ONE RESIDENTIAL HOUSE OWNED ON THE DATE OF TRANSFER OF THE ORIGINAL ASSET IS CHARGEABLE UNDER THE HEAD INCOME FROM HO USE PROPERTY. EXPLANATION FOR THE PURPOSES OF THIS SECTION NET CONSIDERATION IN RELATION TO THE TRANSFER OF A CAPITAL ASSET MEANS THE FULL VALUE OF THE CONSIDERATION RECEIVED OR ACCRUING AS A RESULT OF THE TRANSFER OF THE CAPITAL ASSET AS RE DUCED BY ANY 5 I.T.A. NO.925/CHNY/19 EXPENDITURE INCURRED WHOLLY AND EXCLUSIVELY IN CONNEC TION WITH SUCH TRANSFER. (2) WHERE THE ASSESSEE PURCHASES WITHIN THE PERIOD OF TWO YEARS AFTER THE DATE OF THE TRANSFER OF THE ORIGINA L ASSET OR CONSTRUCTS WITHIN THE PERIOD OF THREE YEARS AFTER SUCH DATE ANY RESIDENTIAL HOUSE THE INCOME FROM WHICH IS CHARGEA BLE UNDER THE HEAD INCOME FROM HOUSE PROPERTY OTHER THAN THE N EW ASSET THE AMOUNT OF CAPITAL GAIN ARISING FROM THE TRANSFE R OF THE ORIGINAL ASSET NOT CHARGED UNDER SECTION 45 ON THE BA SIS OF THE COST OF SUCH NEW ASSET AS PROVIDED IN CLAUSE (A) O R AS THE CASE MAY BE CLAUSE (B) OF SUB-SECTION (1) SHALL BE DE EMED TO BE INCOME CHARGEABLE UNDER THE HEAD CAPITAL GAINS RE LATING TO LONG- TERM CAPITAL ASSETS OF THE PREVIOUS YEAR IN WHICH S UCH RESIDENTIAL HOUSE IS PURCHASED OR CONSTRUCTED. (3) WHERE THE NEW ASSET IS TRANSFERRED WITHIN A PERI OD OF THREE YEARS FROM THE DATE OF ITS PURCHASE OR AS THE CASE MAY BE ITS CONSTRUCTION THE AMOUNT OF CAPITAL GAIN ARISING FR OM THE TRANSFER OF THE ORIGINAL ASSET NOT CHARGED UNDER SECTION 45 ON THE BASIS OF THE COST OF SUCH NEW ASSET AS PROVIDED IN CLAUSE (A ) OR AS THE CASE MAY BE CLAUSE (B) OF SUB-SECTION (1) SHALL BE DEEMED TO BE INCOME CHARGEABLE UNDER THE HEAD CAPITAL GAINS RE LATING TO LONG- TERM CAPITAL ASSETS OF THE PREVIOUS YEAR IN WHICH S UCH NEW ASSET IS TRANSFERRED. (4) THE AMOUNT OF THE NET CONSIDERATION WHICH IS NOT APPROPRIATED BY THE ASSESSEE TOWARDS THE PURCHASE O F THE NEW ASSET MADE WITHIN ONE YEAR BEFORE THE DATE ON WHICH THE TRANSFER OF THE ORIGINAL ASSET TOOK PLACE OR WHICH IS NOT UTILISED BY HIM FOR THE PURCHASE OR CONSTRUCTION OF THE NEW ASSET BEFORE THE DATE OF FURNISHING THE RETURN OF INCOME UNDER S ECTION 139 SHALL BE DEPOSITED BY HIM BEFORE FURNISHING SUCH RE TURN SUCH DEPOSIT BEING MADE IN ANY CASE NOT LATER THAN THE D UE DATE APPLICABLE IN THE CASE OF THE ASSESSEE FOR FURNISHI NG THE RETURN OF INCOME UNDER SUB-SECTION (1) OF SECTION 139 IN AN ACCOUNT IN ANY SUCH BANK OR INSTITUTION AS MAY BE SPECIFIED IN AND UTILISED IN ACCORDANCE WITH ANY SCHEME WHICH THE CENTRAL GOVER NMENT MAY BY NOTIFICATION IN THE OFFICIAL GAZETTE FRAME IN T HIS BEHALF AND SUCH RETURN SHALL BE ACCOMPANIED BY PROOF OF SUCH D EPOSIT ; AND FOR THE PURPOSES OF SUB-SECTION (1) THE AMOUNT IF ANY ALREADY 6 I.T.A. NO.925/CHNY/19 UTILISED BY THE ASSESSEE FOR THE PURCHASE OR CONSTR UCTION OF THE NEW ASSET TOGETHER WITH THE AMOUNT SO DEPOSITED SHA LL BE DEEMED TO BE THE COST OF THE NEW ASSET : PROVIDED THAT IF THE AMOUNT DEPOSITED UNDER THIS SU B-SECTION IS NOT UTILISED WHOLLY OR PARTLY FOR THE PURCHASE OR C ONSTRUCTION OF THE NEW ASSET WITHIN THE PERIOD SPECIFIED IN SUB-SE CTION (1) THEN (I) THE AMOUNT BY WHICH(A) THE AMOUNT OF CAP ITAL GAIN ARISING FROM THE TRANSFER OF THE ORIGINAL ASSET NOT CHARGED UNDER SECTION 45 ON THE BASIS OF THE COST OF THE NEW ASSET AS PROVIDED IN CLAUSE (A) OR AS THE CASE MAY BE CLAUSE (B) OF SUB-SECTION (1) EXCEEDS(B) THE AMOUNT THAT WOULD NOT HAVE BEEN S O CHARGED HAD THE AMOUNT ACTUALLY UTILISED BY THE ASSESSEE FO R THE PURCHASE OR CONSTRUCTION OF THE NEW ASSET WITHIN TH E PERIOD SPECIFIED IN SUB-SECTION (1) BEEN THE COST OF THE N EW ASSET SHALL BE CHARGED UNDER SECTION 45 AS INCOME OF THE PREVIOUS YEAR IN WHICH THE PERIOD OF THREE YEARS FROM THE DATE OF TH E TRANSFER OF THE ORIGINAL ASSET EXPIRES ; AND(II) THE ASSESSEE S HALL BE ENTITLED TO WITHDRAW THE UNUTILISED AMOUNT IN ACCORDANCE WIT H THE SCHEME AFORESAID. 5. THE LANGUAGE EMPLOYED BY THE PARLIAMENT IS VERY CLEAR THAT THE ASSESSEE HAS TO PURCHASE WITHIN A PERIOD OF ONE YEAR BEFORE OR AFTER THE DATE ON WHICH THE TRANSFER TOOK PLACE OR THE ASSESSEE HAS TO CONSTRUCT A RESIDENTIAL HOUSE WITHIN A PERIOD OF THREE YEARS AFTER THE SALE OF THE PROPERTY CAPITAL ASSET. IN THIS C ASE AFTER THE SALE OF THE PROPERTY THE ASSESSEE ENTERED INTO A PERPETUAL LEASE FOR AN UNLIMITED PERIOD. THE ASSESSEE HAS EVERY RIGHT TO TRANSFER THE PERPETUAL LEASE TO THIRD PARTY IN THE OPEN MARKET A ND ALSO HAS EVERY RIGHT TO CONTINUE IN POSSESSION OF RESIDENTIAL HOUS E. THEREFORE THE QUESTION ARISES FOR CONSIDERATION IS WHETHER THE PR OPERTY ACQUIRED BY THE ASSESSEE BY MEANS OF PERPETUAL LEASE FOR UNL IMITED PERIOD 7 I.T.A. NO.925/CHNY/19 WOULD AMOUNT TO PURCHASE WITHIN THE MEANING OF SECT ION 54F OF THE ACT? WE HAVE CAREFULLY GONE THROUGH THE PROVISIONS OF SECTION 2(47) OF THE ACT AND ALSO 269UA(2)(III)(F) OF THE ACT. F OR THE PURPOSE OF CONVENIENCE WE ARE REPRODUCING SECTIONS 2(47)(VI) AND 269UA(2)(III)(F) OF THE ACT WHICH READ AS FOLLOWS:- 2(47) TRANSFER IN RELATION TO A CAPITAL ASSET INCL UDES (I) THE SALE EXCHANGE OR RELINQUISHMENT OF THE ASSE T ; OR (II) THE EXTINGUISHMENT OF ANY RIGHTS THEREIN ; OR (III) THE COMPULSORY ACQUISITION THEREOF UNDER ANY LAW ; OR (IV) IN A CASE WHERE THE ASSET IS CONVERTED BY THE OWNER THEREOF INTO OR IS TREATED BY HIM AS STOCK-IN-TRA DE OF A BUSINESS CARRIED ON BY HIM SUCH CONVERSION OR TREA TMENT ; OR (IVA) THE MATURITY OR REDEMPTION OF A ZERO COUPON B OND ; OR (V) ANY TRANSACTION INVOLVING THE ALLOWING OF THE P OSSESSION OF ANY IMMOVABLE PROPERTY TO BE TAKEN OR RETAINED I N PART PERFORMANCE OF A CONTRACT OF THE NATURE REFERRED TO IN SECTION 53A OF THE TRANSFER OF PROPERTY ACT 1882 (4 OF 1882) ; OR (VI) ANY TRANSACTION (WHETHER BY WAY OF BECOMING A MEMBER OF OR ACQUIRING SHARES IN A CO-OPERATIVE SOCIETY COMPANY OR OTHER ASSOCIATION OF PERSONS OR BY WAY OF ANY AGREE MENT OR ANY ARRANGEMENT OR IN ANY OTHER MANNER WHATSOEVER) WHICH HAS THE EFFECT OF TRANSFERRING OR ENABLING THE ENJ OYMENT OF ANY IMMOVABLE PROPERTY : EXPLANATION 1. FOR THE PURPOSES OF SUB-CLAUSES (V) AND (VI) IMMOVABLE PROPERTY SHALL HAVE THE SAME MEANING AS IN CLAUSE (D) OF SECTION 269UA. 8 I.T.A. NO.925/CHNY/19 EXPLANATION 2. FOR THE REMOVAL OF DOUBTS IT IS HEREBY CLARIFIED THAT TRANSFER INCLUDES AND SHALL BE DEE MED TO HAVE ALWAYS INCLUDED DISPOSING OF OR PARTING WITH A N ASSET OR ANY INTEREST THEREIN OR CREATING ANY INTEREST IN A NY ASSET IN ANY MANNER WHATSOEVER DIRECTLY OR INDIRECTLY ABSO LUTELY OR CONDITIONALLY VOLUNTARILY OR INVOLUNTARILY BY WAY OF AN AGREEMENT (WHETHER ENTERED INTO IN INDIA OR OUTSIDE INDIA) OR OTHERWISE NOTWITHSTANDING THAT SUCH TRANSFER OF RIGHTS HAS BEEN CHARACTERISED AS BEING EFFECTED OR DEPENDE NT UPON OR FLOWING FROM THE TRANSFER OF A SHARE OR SHA RES OF A COMPANY REGISTERED OR INCORPORATED OUTSIDE INDIA ; 269UA(2)(III)(F) 'TRANSFER '-- (I) IN RELATION TO ANY IMMOVABLE PROPERTY REFERRED TO IN SUB- CLAUSE (I) OF CLAUSE (D) MEANS TRANSFER OF SUCH PR OPERTY BY WAY OF SALE OR EXCHANGE OR LEASE FOR A TERM OF NOT L ESS THAN TWELVE YEARS AND INCLUDES ALLOWING THE POSSESSION OF SUCH PROPERTY TO BE TAKEN OR RETAINED IN PART PERFORMANC E OF A CONTRACT OF THE NATURE REFERRED TO IN SECTION 53A OF THE TRANSFER OF PROPERTY ACT 1882 (4 OF 1882). EXPLANATION FOR THE PURPOSES OF THIS SUB-CLAUSE A LEASE WHICH PROVIDES FOR THE EXTENSION OF THE TERM THEREOF BY A FURTHER TERM OR TERMS SHALL BE DEEMED TO BE A LEASE FOR A TERM OF NOT LESS THAN TWELVE YEARS IF THE AGGREGAT E OF THE TERM FOR WHICH SUCH LEASE IS TO BE GRANTED AND THE FURTHER TERM OR TERMS FOR WHICH IT CAN BE SO EXTENDED IS NOT LESS THAN TWELVE YEARS; (II) IN RELATION TO ANY IMMOVABLE PROPERTY OF THE N ATURE REFERRED TO IN SUB-CLAUSE (II) OF CLAUSE (D) MEANS THE DOING OF ANYTHING (WHETHER BY WAY OF ADMITTING AS A MEMBE R OF OR BY WAY OF TRANSFER OF SHARES IN A CO-OPERATIVE SOCI ETY OR COMPANY OR OTHER ASSOCIATION OF PERSONS OR BY WAY O F ANY AGREEMENT OR ARRANGEMENT OR IN ANY OTHER MANNER WHATSOEVER) WHICH HAS THE EFFECT OF TRANSFERRING OR ENABLING THE ENJOYMENT OF SUCH PROPERTY. 9 I.T.A. NO.925/CHNY/19 6. A BARE READING OF SECTION 2(47)(VI) OF THE ACT S HOWS THAT THE AGREEMENT OR ARRANGEMENT WHICH HAS THE EFFECT OF TR ANSFERRING OR ENABLING THE ENJOYMENT OF IMMOVABLE PROPERTY HAS T O BE CONSIDERED AS TRANSFER IN RELATION TO CAPITAL ASSET . IN THIS CASE THERE WAS A PERPETUAL LEASE AGREEMENT FOR UNLIMITED PERIO D. THE ASSESSEE WAS IN POSSESSION OF RESIDENTIAL HOUSE. T HEREFORE THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT IN VIEW OF THE DEFINITION FOUND IN SECTION 2(47)(VI) OF THE ACT THE TRANSACT ION OF PERPETUAL LEASE AGREEMENT BY WHICH THE ASSESSEE TOOK POSSESSI ON OF PROPERTY FOR UNLIMITED PERIOD HAS TO BE CONSTRUED AS PURCHASE OF PROPERTY WITHIN THE MEANING OF SECTION 54F OF THE A CT. 7. FURTHERMORE SECTION 269UA(2)(III)(F) OF THE ACT CLEARLY SAYS THAT ANY LEASE FOR A TERM OF NOT LESS THAN TWELVE Y EARS AND INCLUDES HOLDING POSSESSION OF SUCH PROPERTY THEREBY TAKEN HAS TO BE CONSTRUED AS TRANSFER. OF COURSE THIS IS IN THE C ONTEXT OF PURCHASE OF PROPERTY BY CENTRAL GOVERNMENT IN THE CASE OF TR ANSFER. IN OTHER WORDS SECTION 269UA(2)(III)(F) ALSO DEFINES TRANSF ER WHICH INCLUDES LEASE FOR A TERM NOT LESS THAN TWELVE YEARS. IN TH IS CASE ADMITTEDLY THE LEASE WAS NOT FOR LESS THAN TWELVE YEARS. HENC E FOR ALL PRACTICAL PURPOSES THE ACQUISITION OF PROPERTY BY PERPETUAL LEASE EXCEEDING THE PERIOD OF TWELVE YEARS HAS TO BE CONSTRUED AS PURCHASE WITHIN 10 I.T.A. NO.925/CHNY/19 THE MEANING OF SECTION 54F OF THE ACT. IN VIEW OF THE SCHEME UNDER THE PROVISIONS OF THE INCOME-TAX ACT AS ENUNCIATED UNDER SECTION 2(47)(VI) AND SECTION 269UA(2)(III)(F) THIS TRIBUN AL IS OF THE CONSIDERED OPINION THAT WHEN THE ASSESSEE ACQUIRED THE RESIDENTIAL HOUSE BY MEANS OF PERPETUAL LEASE EXCEEDING TWELVE YEARS IT HAS TO BE CONSTRUED AS ACQUISITION OF PROPERTY / PURCHA SE OF PROPERTY WITHIN THE MEANING OF SECTION 54F OF THE ACT. THER EFORE THE ASSESSEE IS ENTITLED FOR EXEMPTION UNDER SECTION 54 F OF THE ACT. HENCE THIS TRIBUNAL IS UNABLE TO UPHOLD THE ORDER OF THE PRINCIPAL COMMISSIONER PASSED UNDER SECTION 263 OF THE ACT. ACCORDINGLY THE IMPUGNED ORDER OF THE PRINCIPAL COMMISSIONER IS QUASHED. 8. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 6 TH DECEMBER 2019 AT CHENNAI. SD/- SD/- (. ! ) ( ... ) (S. JAYARAMAN) (N.R.S. GANESAN) # / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI 4 /DATED THE 6 TH DECEMBER 2019. KRI. 11 I.T.A. NO.925/CHNY/19 - +056 76'0 /COPY TO: 1. )* /APPELLANT 2. + )* /RESPONDENT 3. PRINCIPAL CIT-1 CHENNAI 4. 68 +0 /DR 5. 9& : /GF.