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2021 (2) TMI 1031 - AT - Income TaxClaim for deduction u/s 54F - assessee is having more than one house property thus the AO rejected the claim for deduction u/s 54F - Ground floor is having a garage and one residential unit; first floor is having two 1BHK flats and second floor is having 2 single (with bath) units - AO, accordingly, took the view that each of the unit is separate house - whether each floor of a single stand alone building should be considered as separate house? - HELD THAT:- As decided in Shri Bhatkal Ramarao Prakash [2019 (2) TMI 1059 - ITAT BANGALORE] an independent building can have a number of residential units and it will not lose the character of “one residential house”. Accordingly, we are unable to agree with the view taken by the tax authorities that each floor of the individual house/each portion in a floor is separate house property. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and hold that the house property received by the assessee is “one residential house” only within the meaning of sec.54F of the Act. Accordingly, we are of the view that the reasoning given by the AO to reject the claim for deduction u/s 54F is not justified. - Decided in favour of assessee.
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