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2020 (1) TMI 1489 - AT - Income TaxDisallowance u/s.54F - long-term capital gain for the investment made in the two properties which are adjacent to each other and used as one residential unit. Indeed, the provision of law requires that the exemption will be available to the assessee under section 54F of the Act for the investment in one residential unit - HELD THAT:- One assessee can buy huge bungalow/property say thousand square meters and can claim the deduction subject to the conditions. Similarly, the other assessee on the other hand acquired two different residential properties adjacent to each other but both the properties put together has only two hundred square meters but he will be extended the benefit of the exemption with respect to one unit only because of the reason that there are two different properties based on registry documents. There can be a situation that the family of the assessee is quite large, comprising of several members in the family and therefore he needs two properties adjacent to each other to accommodate his family members. So from the point of view of the assessee, it is single property but he got two different properties registered as per the requirement of the builder. In our considered view, the assessee cannot be deprived of the benefit conferred under the statute merely on the reasoning that there were two different registries of the buildings/properties. It is also not a case of the revenue/assessee that both the properties purchased by the assessee were located in different graphical area. In such a situation the law amended under section 54F of the Act appears to be applicable where the assessee buys two properties in two different areas. Principles laid down by the courts cannot be just brushed aside on the aspect of defining the one residential unit - we are of the view that the assessee is entitled for the exemption provided under section 54F of the Act in the present facts of circumstances. Hence, we set aside the finding of the learned CIT (A) and direct the AO to delete the addition made - Decided in favour of assessee.
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