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2019 (9) TMI 1031 - AT - Income TaxEligibility of claim of deduction u/s.54 - two new residential properties purchased by the assessee out of sale consideration of old property - HELD THAT:- We find that the issue in dispute is squarely covered in favour of the assessee by the Co-ordinate Bench of this Tribunal in case of Ravishankar vs. ACIT [2018 (1) TMI 980 - ITAT MUMBAI] wherein as held as prior to A.Y 201516 no restriction was placed by the legislature in respect of investments in the residential houses that an assessee could make for claiming deduction under Sec. 54 of the Act. We thus are of the view that the claim of deduction raised by the assessee under Sec. 54 in respect of investment made towards purchase of residential house at Mumbai and Pune was well in order. We thus in context of the issue under consideration set aside the order of the CIT and uphold the claim of deduction as was raised by the assessee Section 54 of the Act uses the expression “a residential house’’. This expression has been interpreted by the Courts to include investment being made in residential house / houses in order to be eligible to claim deduction u/s.54 of the Act and it does not restrict the claim of deduction u/s.54 of the Act to one house only. We also find that the amendment which had been brought in the Act is only w.e.f. A.Y.2015-16 and cannot be made applicable to the year under consideration as has been held in the aforesaid decision supra. Assessee is entitled for deduction u/s.54 - Decided in favour of assessee.
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