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2018 (8) TMI 1745 - AT - Income TaxEntitlement to exemption u/s 54 - 2 other flats that were gifted by the appellant after the end of the year under appeal which was not relevant to judge the maintainability of the claim for the year under appeal - Held that:- As per the provisions of section 54 in the present year, there is no such requirement of law that the new residential house acquired by the assessee for claiming deduction u/s 54 should be for the purpose of the assessee’s own residence. The tribunal order followed by CIT (A) having been rendered in the case of Arun Kumar Nathan (2017 (10) TMI 1392 - ITAT BANGALORE) does not lay down a binding precedence because in this tribunal order, a judgment of Hon’ble Gujarat High Court rendered in the case of CIT vs. Nathu Hansraj [1976 (1) TMI 29 - GUJARAT HIGH COURT] was followed without noticing the changes in the provisions of section 54 in A. Y. 1958 – 69 and 2013 – 14 which was before the tribunal in this case. Hence, on this aspect of the objection of the lower authorities that the new two flats are not for own residential use of the assessee, find no merit because there is no such requirement of law at present although it was earlier as per the provisions of section 54 in AY 1968-69 as reproduced by Hon’ble Gujarat High Court. As examine the merit in this objection of the lower authorities that deduction u/s 54 is allowable for only one flat in view of the word ‘a residential house.’ The issue is squarely covered in favour of the assessee by the judgment in the case of K. G. Rukmminiamma (2010 (8) TMI 482 - KARNATAKA HIGH COURT).
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