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2019 (6) TMI 431 - AT - Income TaxRevision u/s 263 by CIT - Directing the AO to verify as to whether the "new acquired flats are independent units" and re-examining the claim of the Appellant u/s 54 - HELD THAT:- As perused relevant material on record including question put to assessee in notice u/s 142(1) during original assessment framed u/s143(3) specific queries were raised by Ld.AO regarding assessee’s eligibility to claim exemption u/s 54 and the documents / information were duly supplied by the assessee. Therefore, we form an opinion that Ld. AO with due application of mind, after making requisite inquiries, accepted assessee’s claim. This being so, the action of Ld. Pr.CIT could not be justified. Nothing on record would suggest that the action of Ld.AO was not in conformity with statutory provisions or not in line with the binding judicial precedents prevailing at the time of framing assessment u/s 143(3). As per extant provisions of Section 54 as interpreted by various judicial authorities, the expressions ‘a residential house’ would not mean to indicate a singular number. The same is also evident from the fact that the words ‘a residential house’ were replaced with ‘one residential house’ only with effect from 01/04/2015 and accordingly, the amendment was not applicable to impugned AY. Simply because, Ld. Pr.CIT hold adverse view in the matter, in our opinion, would not be a ground to invoke jurisdiction u/s 263 unless any perversity is established in the order of Ld. AO. Once a plausible & legally sustainable view has been taken by Ld. AO in the matter, the revisional jurisdiction u/s 263 would not be warranted. - Decided in favour of assessee.
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