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2022 (11) TMI 230 - AT - Income TaxDeduction u/s 54F - AO had denied the exemption on the ground that the same was not claimed in the return of income - CIT(A) held that the claim for exemption u/s 54 can be entertained at the stage of appeal - appellant had purchased two flats in Pune by two separate purchase deeds - HELD THAT:- It is an admitted fact that the appellant had not offered any capital gains on the sale of flat at Mumbai. During the course of assessment proceedings, the assessee had furnished the details of working of capital gains arising on sale of flat at Mumbai and claimed exemption u/s 54. CIT(A) had entertained the additional claim u/s 54 placing reliance on the decision of CIT v. Prithvi Brokers & Shareholders (P.) Ltd [2012 (7) TMI 158 - BOMBAY HIGH COURT] and proceeded to examine the claim on merits. CIT(A) had extracted the details of investments made in the new two flats and held that two flats cannot be treated as one flat in view of the fact that they cannot be combined into single unit as they are located in different floors placing reliance on case of CIT vs. Devdas Naik[2014 (7) TMI 173 - BOMBAY HIGH COURT] CIT(A) placing reliance on the decision of K.C. Kaushik [1990 (4) TMI 38 - BOMBAY HIGH COURT] held that the assessee is entitled for exemption u/s 54 only in respect of one flat and directed the Assessing Officer to exempt the cost of investment in one flat made before due date of filing the return of income - The contention of the ld. AR that the appellant is entitled to the exemption u/s 54 in respect of investment made into two flats cannot be accepted in view of the decision of K.C. Kaushik - Hence, the order of the ld. CIT(A) is based on the decision of the Hon’ble Jurisdictional High Court referred above supra, does not call for any interference. Accordingly, the grounds of appeal filed by the assessee stand dismissed.
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