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2020 (10) TMI 1163 - HC - Income TaxWrit appeal by revenue - Claim of the Assessee was allowed in the writ petition - Revision u/s 264 - CIT rejected the claim for deduction u/s 54 - Assessee deposited partial amount in the capital gain deposit account with State Bank of India, and partial spent on construction activity - Writ Appeal filed by the revenue has become infructuous owing to the fact that the 1st appellant has passed an order u/s 264(7) dated 20.02.2020 and granted relief to the assessee - HELD THAT:- Order passed by the 1st appellant dated 20.02.2020 that it has not been passed without prejudice to the rights of the department in pursuing the Writ Appeal against the order in the writ petition. In fact, the 1st appellant records in the order that taking cognizance of the direction issued by the High Court, assessee was heard and in pursuant to the Court's decision, the additional cost of construction incurred by the assessee for claiming deduction under Section 54 of the Act was allowed and then, relief has been granted. Revenue cannot pursue this appeal after implementing order passed in the writ petition. However, we take note of the argument of Mr. Prabhu Mukunth Arunkumar, learned standing counsel for the appellant with regard to the legal issue, which has been decided by Writ Court by following the decision in K.Ramachandra Rao [2015 (4) TMI 620 - KARNATAKA HIGH COURT]. On that issue, we are of the primafacie view that finding rendered in Humayun Suleman Merchant, appears to reflect the correct position of law.
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