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2023 (2) TMI 333 - ITAT HYDERABADRevision u/s 263 - deduction u/s 54F - As per CIT AO has allowed the claim of deduction u/s 54F without proper verification of the facts in the wake of assessee’s contention that some of the properties were given on rent and hence commercial in nature - Assessee owns more than one residential property on the date of transfer of the capital asset other than the new asset acquired - HELD THAT:- We are unable to accept the contention of the ld.counsel for the assessee that since the flats are utilized for commercial use, they are not residential in nature and therefore, the assessee is eligible to get the benefit of deduction u/s. 54F of the I.T.Act. Even though, the properties situated at Flat No.505 Begumpet is accepted to be used for business purpose of the assessee being used for conducting meetings with the clients relating to his construction projects undertaken, however, the flats at Swastik Apartments, Siliguri and the three flats at Lakshmi Nilayam, Kavuri Hills in Hyderabad cannot be accepted to be commercial in nature in absence of any satisfactory evidence. Under these circumstances, we are of the considered opinion that the benefit of deduction u/s. 54F was rightly denied to the assessee on the ground that the assessee owns more than one residential property on the date of transfer of the capital asset other than the new asset acquired. The flats are situated in residential societies and there is no evidence on record to show that local authorities have charged the taxes applicable for commercial use of the property or the electricity department levied the charges applicable for commercial properties. Therefore, the decisions relied on by the ld.counsel for the assessee, in our opinion, are not applicable to the facts of the present case. In this view of the matter and in view of the detailed reasoning given by the ld.CIT(A) on this issue, we do not find any infirmity in his order denying the benefit of deduction u/s. 54F of the I.T.Act. We, therefore uphold the order of the ld.CIT(A) on this issue and the grounds raised by the assessee are dismissed.
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