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2018 (12) TMI 121 - AT - Income TaxRectification of mistake 154 - exemption u/s 54F - Held that:- Invoking of the provisions of section 154 of the income tax act it is apparent that the learned assessing officer was not considering the issue of the cost of the residential house, but the provisions of section 54EC of the act. We are of the opinion that even in the show cause notice the AO has not noted that the assessee has shown the incorrect cost of residential house property. AO is to pass detailed order to show that certain cost of gadgets have been included by the assessee in the cost of residential house property for claiming exemption under section 54F of the act. We are of the opinion that the impugned adjustment that is proposed to be made by the learned assessing officer to the total income of the assessee is not on account of mistake apparent from record. In view of this we are not inclined to uphold the order of the learned assessing officer so far as it relates to the adjustment on account of the capital gain is chargeable to tax by tweaking the cost of the residential house property. Accordingly, the ground number 1 of the appeal is allowed. Whether deduction u/s 54F will include the expenditure incurred by the assessee on account of heater, air conditioner and home kitchen - Held that:- As we have already quashed the rectification notice issued by the assessing officer to the extent of adjustment to the capital gain computed by the assessee. Accordingly, same is dismissed.
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