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2021 (9) TMI 811 - AT - Income TaxLTCG - Deduction u/s 54F - Purchase of farmhouse - further allegation that, assessee owned more than one residential property at the time of making claim of deduction - CIT-A deleted the addition - HELD THAT:- AO himself says that he could not prove whether the assessee has more than one property. Furthermore, with respect to the objection of the learned assessing officer, that assessee has purchased a farmhouse and therefore it is not a residential house property is also devoid of any merit. Farmhouse can be residential house also. It is not the case of the revenue that assessee has purchased excessive land and has constructed a small house thereon and thereby claiming the deduction on the total value of land and small property constructed thereon. If that had been the case perhaps, the assessee would have been eligible for proportionate deduction to the extent of residential house property as well as lender pertinent thereto. There is no finding by the learned assessing officer that assessee has purchased excessive land which would be used as a farmland and has for namesake constructed a residential house property. Merely because a property is called a farmhouse, it does not become a non-residential house property unless otherwise proved. In view of this, we do not find any reason to upset the order of the ld CIT(A). Accordingly, ground No. 1 is dismissed. Addition of Credit card expenditure - assessee has submitted that he has three credit cards, which are exclusively used for the purpose of the business of assessee’s employer where the assessee is CEO - CIT-A deleted addition - HELD THAT:- When the expenditure is incurred merely because this expenditure has been incurred through his credit card there is no reason to make an addition in the hands of the assessee. The assessee also stated that he continues to make such expenditure on behalf of the firm through his credit card in subsequent years also and no such additions have been made in the subsequent year. This fact remains uncontroverted. In view of this, we do not find any infirmity in the order of the ld CIT(A) in deleting the addition. - Decided against revenue.
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