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2006 (4) TMI 197 - AT - Income TaxExemption claimed u/s 54 - Computation capital gains - Requirement of the family members of the assessee with regard to the residential house to restrict the exemption to two flats as against three flats claimed by the assessee - HELD THAT:- In the case before us, there is evidence in the form of a ration card where all the residents of the new house built by the assessee have been shown as family members. The CIT(A) has himself adverted to this evidence while accepting the assessee's case in principle. In our view, having accepted the case of the assessee in principle, he was not justified in examining the question as to who can be considered as the members of the assessee's family and in restricting the exemption to two flats on the footing that it will meet the requirements of the assessee and his son's family. He was not justified in excluding the widowed daughter and her family who were admittedly staying with the assessee in the house, albeit in an independent portion. They are, in our view, as much part of the assessee's family as the assessee's son and his family. We therefore hold that the CIT(A) was not justified in restricting the claim u/s 54 to twoflats. He ought to have allowed the exemption as claimed by the assessee. We hold accordingly. The appeal is accordingly allowed with no order as to costs.
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