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2021 (10) TMI 16 - AT - Income TaxExemption u/s. 54F - Denial of claim as assessee has not made any investment in purchase/construction of any residential house - assessee himself has admitted that the existing residential property owned by him consisted of 3 independent houses out of which one is self-occupied and other two have been let out for rent. Since the assessee is having more than one residential house, the conditions prescribed u/s 54F of the Act has been violated - HELD THAT:- We have noticed that the assessee has paid the amount of ₹ 80.00 lakhs on 22.4.2013, while the vacant plot was sold on 30-8-2012, meaning thereby, the assessee has invested the a sum of ₹ 80 lakhs, out of sale consideration of ₹ 85.00 lakhs in purchasing a new residential property. The fact that the assessee got the property only in 2018 is due to reasons beyond the control of the assessee, which has been narrated in the earlier paragraphs. Hence the assessee should not suffer for the delinquency of the builder and accordingly we are of the view that the assessee should be granted deduction u/s 54F of the Act for the amount of ₹ 80 lakhs given to the builder within the prescribed time, subject to fulfillment of other conditions. Since there was no occasion for the AO to examine details of purchase of new property, we are remitting this issue for examining the details of purchase of new residential house property. Assessee is owning three residential houses - The ground floor is used by the assessee and the first floor has been let out to two tenants. The assessee invited our attention to the building plan and some other documents. Accordingly the Ld A.R contended that there is no violation of sec.54F of the Act on this aspect. In our view, this fact also requires examination at the end of the AO. If the assessee owns only one residential property, which consisted of three residential units, in our view, it should be considered as one residential house only. In this regard, we derive support from the decision rendered by the co-ordinate bench in the case of Shri Bhatkal Ramarao Prakash [2019 (2) TMI 1059 - ITAT BANGALORE] Appeal of the assessee is treated as allowed for statistical purposes.
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