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2021 (9) TMI 1138 - AT - Income TaxDeduction u/s 54F - Rejection of claim for Constructing more than one house - house property constructed by the assessee consisted of ground floor and 4 floors above it - As per AO the assessee has constructed more than one residential house and hence he would be entitled for deduction u/s 54F of the Act for construction of one residential house only - whether each floor of a single stand alone building should be considered as separate house? - HELD THAT:- An independent building can have a number of residential units and it will not lose the character of “one residential house”. Identical view has been expressed by another co-ordinate bench in the case of Shri Chandrashekar Veerabhadraiah [2020 (12) TMI 348 - ITAT BANGALORE] 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 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. Appeal of the assessee is allowed.
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