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2021 (10) TMI 108 - AT - Income TaxRevision u/s 263 by CIT - assessee is not eligible for deduction under section 54F of the Act where the construction of the residential house had already commenced prior to the sale of the original asset (four land parcel) and the conditions of section 54F does not stand satisfied - HELD THAT:- AO has carried out the specific enquiry with regard to eligibility of deduction claimed under section 54F of the Act. On a corollary, it can be argued that he was satisfied on the propriety of the claim in question. Secondly, the claim of the assessee under section 54F towards residential house property already under construction at the time of transfer of original asset but the construction completed after the transfer is found to be eligible in law by several judicial precedence quoted in the preceding paragraph - where the case of the assessee is vindicated by judicial endorsement, one would at least say that the issue raised by the PCIT is not free of any debate. Where the issue is debatable, and the A.O. has taken a view which is plausible in law, such view cannot be substituted by the view of the superior authority and the order passed cannot be branded as erroneous per se. Therefore, in the absence of any ‘error’ in the assessment having regard to the allowability of section 54F, the enquiry directed by the PCIT are superfluous and without authority of law. Such action of the PCIT cannot be said to be within the realm of revisional jurisdiction under section 263 - Decided in favour of assessee.
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