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2022 (2) TMI 520 - AT - Income TaxDeduction u/s 54F or u/s 54 - property sold as mere sale of land instead of land and building and, thereby denying the benefit of deduction u/s 54 - As since the assessee, in the instant case, has conclusively proved that the property sold was a land with building over it, therefore, merely because in the sale deed only land was mentioned cannot be a ground to deny the benefit of deduction u/s 54 - HELD THAT:- Since the assessee, in the instant case, has sold 1/4th share in the property No. 22, Radice Road, Gokhaley Marg, Lucknow and has filed the requisite details before the AO to substantiate that the property that was sold was, in fact, a building with land appurtenant thereto, therefore we are of the considered opinion that the assessee is entitled to claim the benefit of deduction u/s 54 of the IT Act on account of sale of the property and the subsequent investment in the residential property. Cost of new house property including the cost of improvement to make it habitable - The cost of the property declared by the assessee includes an amount for making the house habitable which includes certain items as per serial No.1 to 16 of the table at para 5.5. of the CIT(A) which in our opinion is not allowable as a deduction for making the house habitable because these are all luxury items.CIT(A) has rightly determined the amount for making the house habitable. Therefore, the assessee is entitled to get the benefit of deduction u/s 54 of the Act to the extent including amount for making the house habitable. The AO shall verify the calculation. The grounds raised by the assessee are accordingly allowed.
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