TMI Blog2012 (8) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is an individual. During the course of assessment proceedings the AO noted from the computation of income by the assessee that the assessee has disclosed capital gain of ₹ 49,82,687/- on account of sale of a Bunglow situated at Plot No. 7, Road No.4, Kalyaninagar, Pune which was held jointly with his brother. The assessee has claimed entire amount as deduction u/s.54 of the Income Tax Act. From the various details furnished by the assessee the AO noted that the original property, i.e. Bunglow at Uma Nivas at the above-mentioned address was shared by the assessee and his brother having 50% share each. In the new properties purchased assessee and his brother have purchased 3 flats, i.e. Flat No. 401, 402 and 403 at a total con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) the revenue is in appeal before us with the following grounds : 1. The order of the learned Commissioner of Income Tax(Appeals)( is contrary to law and to the facts and circumstances of the case. 2. The learned Commissioner of Income Tax (Appeals) erred in allowing the assessee s appeal instead of confirming the assessment made by the Assessing Officer. 3. The learned Commissioner of Income Tax (Appeals) grossly erred in failing to appreciate that each of the flat invested in by the assessee was acquired through separate purchase deed, having an independent entrance, electricity meter, water connection and also separately assessed to property tax by the local authority, and, therefore was in the nature of different res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the assessee before the authorities below that the above 3 flats, which are adjacent to each other having common kitchen and passage are converted into one house for the purpose of residence of the entire family. Therefore, the assessee is entitled to deduction u/s.54 of the Income Tax Act of the entire capital gain. It is the case of the Revenue that the building in which the assessee has purchased 3 flats is a multistoreyed housing unit having kitchen, living room and toilets, 3 bed rooms and dining hall etc. All these units have been independently purchased by separate agreements by the assessee and his brother. Therefore, the assessee is entitled to deduction of capital gain on account of purchase of only one flat. 4.1 We find t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent has been made by the Assessee from his own account? 2. Perused the judgment and order of the Tribunal dated 5th July, 2007. The Tribunal has given its finding in Paragraph 7 of the impugned order as under : It has been shown to us that investment was made by the assessee himself from his Bank account in respect of both the flats i.e. Flat No. 301 and 302 at Cozy Dwell Apartments, Bandra, Mumbai. However, this needs verification by the Assessing Officer. Further, the fact whether these two apartments are being used as one residential house or not is also to be verified. Accordingly the order of the CIT(A) is set aside and the matter is restored to the file of the Assessing Officer to (1) verify the fact whether investment in Flat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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