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2017 (12) TMI 1332 - AT - Income TaxDisallowance of deduction u/s 54 - multiple property purchased - Held that:- The assessee in the present case before us has purchased one flat in Padma Vilas building and another at Hadapsar, Pune which are at two different places and are not commonly placed. Secondly, there is finding of fact that widow of assessee is staying alone in the house at Padma Vilas building and it is not clear whether the other house is occupied by her or on rent. Under the provisions of the Act, it is not the requirement to occupy the premises for itself. However, we have to keep in mind the observations of the Hon’ble High Court of Karnataka in CIT Vs. Khoobchand M. Makhija (2013 (12) TMI 1525 - KARNATAKA HIGH COURT), wherein after allowing the claim of deduction under section 54 of the Act in respect of second consecutive flat, the Hon’ble High Court held that while interpreting the word ‘a residential house’, the Court or the Tribunal or the authorities have to keep in mind the facts of particular case. The Hon’ble High Court has clearly held that “a” cannot be read as singular, it also cannot be read as multiples and so as to avoid paying tax under section 45 of the Act. Applying the said principle to the facts of the present case, we hold that the assessee is entitled to claim the deduction under section 54 of the Act only in respect of flat in Padma Vilas building. We uphold the order of CIT(A) in denying the deduction under section 54 of the Act in respect of flat at Hadapsar.
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