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2018 (3) TMI 1791 - AT - Income TaxDeduction u/s.54F - CIT(A) restricting the claim of deduction by excluding the portion of the residential building which was used for business purpose - HELD THAT:- On the plain reading of the provisions of Section 54F of the Act, we do not find any bar on the assessee as how he has to put to use the new residential property constructed / purchased by him for claiming the benefit of deduction U/s.54F of the Act. Section 54F of the Act only stipulates that the assessee should have constructed / purchased a residential house within the stipulated time in order to claim the benefit of deduction. This proposition is fortified by the decision of various Judicial forum enumerated herein below. The Delhi Bench of the Tribunal in the case Mahavir Prasad Gupta Vs. JCIT [2005 (10) TMI 231 - ITAT DELHI-G] has held that the use of the property is not a relevant criteria to consider the eligibility for claiming benefit U/s.54F of the Act. The only criterion is whether the assessee has constructed / purchased a residential house with in the stipulated period mentioned in the Act. Also see SHRI SHYAMLAL TANDON VERSUS INCOME TAX OFFICER, WARD 7(4), HYDERABAD [2014 (4) TMI 867 - ITAT HYDERABAD] Thus we hereby direct the Ld.AO to grant the benefit of deduction U/s. 54 of the Act to the assessee for the entire value of the building constructed without looking into as to how the Residential property was utilized by the assessee. - Decided against revenue.
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