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2021 (9) TMI 956 - AT - Income TaxDeduction u/s 54F - HUF - reinvestment in multiple properties located in different addresses is not eligible for claiming deduction - HELD THAT:- As decided in the case of Smt. B. Vathsala [mother of Shri B. Sundararajan, assessee] [2019 (12) TMI 1543 - ITAT CHENNAI] as relying case of Tilokchand & Sons v ITO [2019 (4) TMI 713 - MADRAS HIGH COURT] has held that profit on sale of property used for purchasing more than one residential houses within stipulated time limit, the assessee would be entitled to the benefit of exemption under section 54 of the Act - So long as the same Assessee (HUF) purchased one or more residential houses out of the sale consideration for which the capital gain tax liability is in question in its own name, the same Assessee should be held entitled to the benefit of deduction under Section 54 of the Act, subject to the purchase or construction being within the stipulated time limit in respect of the plural number of residential houses also. - Decided in favour of assessee. Computation of capital gain - cost of acquisition being the fair market value as on 01.04.1981 - HELD THAT:- Admittedly, the date of sale was on 19.03.2008 for a consideration of ₹.25,00,00,000/-. Without any valid document, the assessee has estimated the cost of acquisition of the property at ₹.25,00,000/- per ground, which appears to be on the higher side, but, at the same time, the value adopted by the Assessing Officer is only ₹.30,000/- per ground and that is also not correct value since the property is located at T. Nagar, Chennai. The decision in the case of CIT v. J. Chelladurai [2011 (12) TMI 41 - MADRAS HIGH COURT] relied on by the ld. Counsel for the assessee has no application since the property in that case was located in mofussil area, whereas, in the present case, the property is at prime locality of Chennai city. Thus, to meet the ends natural justice and considering the facts and circumstances of the case, we fix the value of the property at ₹.45,000/- per ground as on 01.04.1981 i.e., 45,000 x 4.5 = 2,02,500x5/9 comes to ₹.1,12,500/- and direct the Assessing Officer to adopt the value and allow relief to the above extent and recompute the capital gains. Thus, the ground raised by the assessee is allowed for statistical purposes.
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