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2018 (3) TMI 1098 - AT - Income TaxLTCG - Disallowing benefit of investment made u/s 54F for purchase of residential house - two adjacent properties purchased - non deposition of sale consideration in capital gain account scheme in accordance with scheme of section 54F(2) - Held that:- Prior to the amendment of the provisions of section 54F vide Finance Act 2014 with effect from 01.04.2015, the two adjacent properties would be considered as single residential house for the purpose of deduction under section 54F. Similar view has been taken in the case of CIT vs. D. Ananda Basappa (2008 (10) TMI 99 - KARNATAKA HIGH COURT) and held that two flats purchased side by side are eligible for deduction u/s 54F of the Act. As in the case of Abhijit Bhandar vs. CIT (2017 (6) TMI 602 - MADRAS HIGH COURT) has held that benefit under section 54 for purchase of two adjacent flats as single residential unit cannot be denied. Accordingly, we are of the considered view that in the absence of denial of fact that these two properties are adjacent to each other and to be used by the assessee for his residential purposes, the benefit under section 54F cannot be denied merely because the assessee has purchased two houses. As regards the non deposit of the amount in the Capital Gain Account Scheme, we note that the assessee has sold the agricultural land on 30th November, 2012 and the house was purchased on 30.10.2014. Therefore, the investment made by the assessee is within two years from the sale of the existing asset and is not beyond the stipulated period as provided under section 54F of the Act. When the assessee has invested the amount within the stipulated period as provided under the provisions of section 54F, then the substantial requirement as per section 54F(1) is satisfied. - Decided in favour of assessee
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