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2012 (7) TMI 431 - AT - Income TaxDenial of the benefit claimed u/s 54 EC - investment made in REC bonds for a sum of Rs. 50 lakh out of total long-term capital gain of Rs. 3.40 crores - the exemption has been claimed under section 54F - Held that:- It is not a case of availing double exemption on the same amount but the assessee has claimed exemption u/s 54F as well as u/s 54 EC for the respective amount of capital gain invested in purchase of new house and REC bonds. Wherever any such restriction is deemed fit, the legislature has provided in the statute a sufficient check but no such restriction in the statute mentioned - The expression 'the whole or any part of capital gains in the long term specified assets' makes it clear that the exemption under section 54 EC is available even when the part of capital gain is invested in specified long-term asset - in favour of assessee. Once the conditions as prescribed under section 54EC are complied with, than the deduction cannot be denied on the ground that the assessee has also availed the exemption under section 54F against the part of the capital gain. Denial of the benefit claimed u/s 54F - Out of the total capital gain of Rs. 3.40 crores arising from sale of ancestral property, the assessee invested Rs. 2.60-crores for the purchase of 4 flats - AO allowed the exemption only in respect of one flat as cannot be said as adjacent flats - Held that:- The agreement by which the assessee has purchased these flats clearly stipulates that the building in question consisting of duplex houses on top two floors of 9th and 10th floors of the building. The flat number 9A, 9B, 10 A and 10 B are so situated that the flat number 9A and 9B at 9th floor are just below the flat number 10A and 10B at 10th floor. The agreement clearly mentions that one duplex flat was converted from 4 units. Thus, if the requirement of the assessee family is met-out only by enlarging the residential unit by merging of 4 flats originally planed into one unit and that too prior to handing over of the possession of the said residential unit, then the said converted residential unit will be treated as a residential house as stipulated u/s 54F - in favour of assessee.
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