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2022 (7) TMI 1264 - AT - Income TaxDeduction claimed u/s.54F - assessee owns more than one houses at the time of transfer of original asset - HELD THAT:- As explanation of the assessee before the AO that although, he had owned more than one houses, but those houses are let out for commercial purposes and if we exclude houses let out for commercial purposes, then the assessee does not have more than one houses, when the original asset was transferred and thus, entitled for exemption u/s 54F - We have considered rival submissions and also decision relied upon by the learned AR for the assessee in the case of Navin Vs, ITO [2020 (6) TMI 514 - KARNATAKA HIGH] and we find that the issue involved in the present appeal is squarely covered by the decision of the Hon’ble Karnataka High Court where it has been held that where two apartments owned by the assessee, even though had been sanctioned for residential purpose, yet same were in fact, being used for commercial purposes as service apartments, then both needs to be excluded for the purpose of deduction u/s.54F. Assessee is entitled for deduction u/s.54F in respect of amount invested for purchase of another residential property. Hence, we direct the AO to delete additions made towards disallowance of deduction claimed u/s.54F - Decided in favour of assessee.
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