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2017 (10) TMI 631 - AT - Income TaxClaim for exemption u/s 54 - rejected the assessee’s claim for exemption u/s 54 instead of sec. 54F of the Act on the ground that it was the assessee himself who claimed exemption u/s 54F - Whether the AO while passing rectification u/s 154 should have to give benefits to assessee available u/s 54, even though there is no claim made by the assessee to that effect? - Held that:- A perusal of the order of assessment dated 27/3/2014 for asst. year 1996-97, as extracted above, clearly establishes the assessee’s averment that the AO has passed this order brazenly, ignoring the binding decision of the Hon’ble Karnataka High Court in assessee's own case [2012 (8) TMI 1100 - KARNATAKA HIGH COURT] for fresh consideration of the assessee’s claim for exemption u/s 54 instead of u/s 54F of the Act as originally claimed. We find that there is not even a whisper in the order of assessment to show that the AO complied with the binding decision of the Hon’ble High Court of Karnataka in considering the assessee’s claim u/s 54 of the Act and adjudicating thereon in the light of the Hon’ble Courts observations/directions in this regard. The ld CIT(A)’s finding in the impugned order to the contrary; that the AO has complied with the directions of the Hon’ble High Court (Supra) in considering the assessee’s claim for exemption u/s 54 of the Act; is, in our view, not borne out from a plain reading of the order of assessment dated 27/3/2014 for asst. year 1996-97 (extracted Supra) and appears to be more a figment of his imagination based on nonexistent assumptions. In this view of the matter, we are of the considered opinion that the order of assessment for asst. year 2006- 07 passed by the AO u/s 143(3) r.w.s 260A of the Act dated 27/3/2014 is to be set aside, as evidently the AO has not followed the Hon’ble High Courts directions for consideration of the assessee’s claim for exemption u/s 54 of the Act in accordance with law and the Hon’ble courts observations in this regard. We accordingly set aside the impugned orders of the authorities below i.e of the AO/CIT(A), and remand the issue of consideration of the assessee’s claim for exemption us/ 54 of the Act to the file of the AO for fresh consideration and to pass a reasoned, speaking order thereon
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