TMI Blog2015 (12) TMI 1858X X X X Extracts X X X X X X X X Extracts X X X X ..... et aside this matter to the file of the assessing officer for carrying out proper examination of the facts. Assessee has violated the second condition prescribed u/s 54F - We have noticed that the assessing officer has already submitted a remand report by obtaining details from the society office, where in it was certified that both the flats are used by the assessee as a single residential unit. Since this fact has been accepted by the tax authorities, merely because, the two flats have been purchased by way of two separate agreements, in our view, will not make any difference. Accordingly, we are of the view that both the flats purchased by the assessee and joined and also used together as a single unit should be considered as a sing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of by ₹ 37,117/- (b) Rejection of claim for deduction u/s 54F of the Act. (c) Interest charged u/s 234B and penalty initiated u/s 271(1)(c) of the Act. The ground relating to interest charged u/s 234B is procedural in nature and the validity of initiation of penalty proceedings is too premature to contest. Hence, we reject the grounds relating to the said issues. 2. The facts relating to the issues are stated in brief. During the year under consideration, the assessee sold two residential flats and one shop located at Pune. The assessee also purchased two adjacent flats in a residential apartment on 22.2.2008 and 15.3.2008. The assessee claimed deduction u/s 54 and also u/s 54F of the new residential flats against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the Ld CIT(A) may take a decision. However, the AO gave that report with a rider that the assessee has purchased the flats by way of separate agreements. 4. The Ld CIT(A) discussed the facts relating to the deduction claimed u/s 54F of the Act and held that the assessee has not satisfied both the conditions prescribed in proviso to sec.54F(1) of the Act. The conditions prescribed in the proviso are (i) the assessee should not own more than one residential house, other than the new asset, on the date of transfer of original asset. (ii) the assessee should not purchase any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset. The Ld CIT(A) also confirmed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been purchased by way of two separate agreements, in our view, will not make any difference. Accordingly, we are of the view that both the flats purchased by the assessee and joined and also used together as a single unit should be considered as a single residential house for the purpose of sec. 54F of the Act. 7. With regard to the indexation benefit computed on the stamp duty and registration charges paid in FY 2006-07, we do not find it necessary to interfere with the decision of the Ld CIT(A) on this issue, as the Ld A.R did not forcefully contend the same. 8. The Ld A.R raised one more contention with regard to the quantum of deduction allowable u/s 54F of the Act. The Ld A.R submitted that the assessing officer has already expre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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