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2019 (7) TMI 1610 - ITAT BANGALOREExemption u/s 54F - whether the assessee is eligible for deduction u/s. 54F in respect of both the house property purchased by the assessee or not? - HELD THAT:- Provisions of section 54F (1) has been amended by Finance (No. 2) Act, 2014 w.e.f. 01.04.2015. In the pre amended provisions, the following words were part of sub section (1) of section 54F “constructed, a residential house”. But as per the amended provisions, these words are replaced by the following words “constructed, one residential house in India”. Specific provision of section 54F, after the amendment w.e.f. 01.04.2015 i.e. Assessment Year 2015-16, deduction is allowable u/s. 54F(1) only in respect of one residential house purchased or constructed by the assessee and hence, on this aspect, we find no infirmity in the order of CIT(A) and we hold that the assessee is not eligible for deduction u/s. 54F(1) in respect of both the house properties purchased by the assessee. Applicability of the proviso (a)(ii) to section 54F (1) - In respect of the applicability of this proviso, this is the only submission of ld. AR of assessee in para 13 of written submissions as reproduced above that since as per the claim of the assessee, deduction is allowable in respect of the property purchased on 28.04.2014 and the assessee has not purchased any other property after this date, this proviso is not applicable. In this regard, we find no merit in this contention of ld. AR of assessee because as per the proviso (a)(ii) of section 54F (1) as reproduced above, this is not the requirement that no other property other than the new property should be purchased after the purchase of new asset. In fact, the requirement of the proviso is this that if the assessee purchases any residential house other than the new asset within the period of one year after the date of transfer of original asset, deduction is not allowable u/s. 54F (1). Hence whether the deduction u/s. 54F (1) is allowable in respect of second property or first property, it is not material because in both the situations, the proviso will be operating and as a result, the assessee will not be eligible for deduction u/s. 54F (1). - Decided against assessee.
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