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2019 (4) TMI 1222 - AT - Income TaxRectification u/s 154 - deduction u/s. 54F denied - mistakes apparent from record - commercial building or residential building - AO has brought on record that the entire building was a commercial building - based on this finding CIT(A) rectified its order - HELD THAT:- CIT(A) in the earlier proceedings had held that the property on the second floor to be residential property. AO in the second round of litigation had observed that the entire building is a commercial building and therefore, held that the assessee is not eligible for deduction u/s. 54F. CIT (A) therefore, rectified the earlier order u/s. 154 on the basis of the findings of Assessing Officer. No doubt, u/s. 154 of the Act, only mistakes apparent from record can be rectified and if an order u/s. 154 has to be passed after long drawn arguments, then, it cannot be said that there is a mistake apparent from record. However, except for relying on the earlier order of the CIT (A), the assessee has brought on record any evidence to demonstrate that the two units on second floor of the building were residential units. AO has brought on record that the entire building was a commercial building and the assessee was entitled to office space on second floor of the building. Thus, clearly, it was factually incorrect to hold that the assessee has received two residential units. An erroneous finding of fact is undisputedly an error apparent from record rectifiable u/s 154 of the Act. Therefore, according to me, the order u/s. 154 issue stain able. Thus, the assessee’s appeal is allowed. In view of the appeal holding the order u/s. 154 of the Act as sustainable, the order against the assessment order u/s. 143(3) r.w.s. 254 of the Act is also held to be sustainable.
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