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2017 (10) TMI 1392 - AT - Income TaxDeduction u/s 54 - collective unit - assessee has purchased two separate houses in different localities which are not adjacent to each other and further one of the houses was let out by the assessee - Held that:- What is purchased by the assessee are two separate residential houses located in different and separate localities and by any parameter cannot be treated as one residential unit then the decisions relied upon by the assessee would not help the case of the assessee for allowing the deduction under Section 54. So far as the applicability of the amended provisions of Section 54 by Finance Act, 2014 it cannot be applied retrospectively prior to the amendment assessment year. Hence, there is no quarrel on the point that the amendment brought in Section 54 and 54F by the Finance Act, 2014 is prospective and cannot be applied retrospectively. Further the decision as relied upon by the assessee are also binding and applicable so far as pre-amended provisions are concerned however, these decisions are applicable only on the specific facts and not as a general rule. Accordingly, when the assessee has purchased two separate houses in different localities which are not adjacent to each other and further one of the houses was let out by the assessee and was not intended to be used for his residential purpose clearly manifest the intention of the assessee to purchase two separate houses not to be used as one residential house disentitle the assessee to claim the benefit u/s 54 in respect of both the houses. No error or illegality in the orders of the authorities below in restricting the deduction under Section 54 in respect of one house only. - decided against assessee.
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