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2022 (7) TMI 676 - AT - Income TaxExemption u/s 54F - investment made in two residential units - order passed by the AO u/s 143(3) holding that deduction claimed by the assessee u/s 54F for the year under consideration was liable to be withdrawn and the income to that extent was taxable in the hands of the assessee for AY 2018-19 when the amount kept in capital gain account was withdrawn and utilized for making investment in purchase of two residential units - HELD THAT:- Claim as made in the return of income filed for the year under consideration is not disturbed by the authorities below and the assessee having allegedly made investment in purchase of two residential units, the deduction claimed under Section 54F is held to be liable to be withdrawn in AY 2018-19 when the said investment was made by the assessee by withdrawing the amount deposited in the capital gain account in view of the provision of subsection (1) of Section 54F - assessee has contended that the CIT(A) ought to have left with issue open to the Assessing Officer to decide on merits in AY 2018-19 instead of giving a finding on merit that the assessee is not eligible for deduction under Section 54F of the Act since the said issue was not involved for consideration on merit in the year under appeal, i.e. AY 2016-17. We find merit in this contention of assessee and since the learned DR has also not raised any objection in this regard, we modify the impugned order of the learned CIT(A) and direct the Assessing Officer to decide the issue relating to the assessee’s claim for deduction under Section 54F of the Act afresh on merit in AY 2018-19 after giving the assessee an opportunity to establish his case that the investment was made by him in purchase of one residential unit and not two residential units as alleged by the Assessing Officer. Appeal of the assessee is treated as partly allowed.
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