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2019 (10) TMI 1528 - AT - Income TaxDeduction u/s 54 - restricted deduction only to one residential house - as argued by assessee that exemption u/s. 54/54F should be allowed on the investment made on multiple residential houses at different places - HELD THAT:- We find that this issue has been decided against the assessee by the Special Bench of the Tribunal, Mumbai in the case of ITO v. Ms. Sushila Jhaveri (2007 (4) TMI 289 - ITAT BOMBAY-I] - We also find that in the case of K.C. Kaushik [1990 (4) TMI 38 - BOMBAY HIGH COURT] the Hon'ble Bombay High Court has taken a similar view. Thus, we do not see any infirmity in allowing exemption u/s. 54 of the Act on the investment made only in one residential house. Thus, we sustain the order of the Ld.CIT(A) and reject the ground raised by the assessee. Capital gain - nature of land sold - whether land along with residential shed sold by the assessee is an agricultural land and not a “capital asset” within the meaning of provisions of clause (a) of Section 2(14) and therefore outside the purview of the provisions of computation of capital gains u/s. 45 of the Act as the asset is situated beyond 8 Kms from the municipal limit - HELD THAT:- Since adjudication of this ground leads to the very computation of capital gains and levy of taxes and since this is not before lower authorities, we feel it appropriate to restore this issue to the file of the Assessing Officer for denovo adjudication in accordance with law. If the land and shed sold by the assessee is proved to be an agricultural land and situated beyond 8 KM from the municipal limits the very computation provisions for capital gains fails and there shall not be any tax liability at all. In the circumstances, since this additional ground is going to the root of the computation of capital gains itself, we restore this issue to the file of the Assessing Officer for denovo adjudication in accordance with law.
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