TMI Blog2024 (4) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... ted with one living room, one kitchen and three rooms. After careful consideration of the facts on record and as per the provisions of section 54F of the Act, it allows an assessee to purchase a residential flat . Therefore, a represents one single unit which consist of one living area, X number of rooms and one kitchen. In common parlance, a residential unit consist of living area, one kitchen and rooms. As per the definition of a residential house the triplex flat purchased by the assessee which has common living area, common kitchen and several rooms which satisfies the definition of a single residential unit. Even though assessee has entered into a single agreement to purchase three identified block from the builder, the identification of blocks may be identified with floor names it does not mean that assessee has purchased three flats merely because of identification given by the builder to complete the whole project. As in this case the builder has modified three flats to suit the requirement of the assessee as per which assessee has purchased a modified flats to suit his requirement as per which assessee has purchased common living area, common kitchen and required rooms whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 400/- and ₹.3,80,55,400/- respectively. In order to verify the claim of the assessee, assessee was asked to justify the claim of deduction under section 54F of the Act, for that purpose, a separate notice dated 07.12.2021 was issued to the assessee and the same was reproduced at Page No. 3 of the assessment order. In response to the above notice assessee has submitted as under:- As regards your query in para-4 about provisions of section 54F: We submit that assessee has purchased one residential house being triplex flat as per the agreement referred to hereinabove. You will observe from the floor plan copy which is part of the registered agreement on page-35 36 that: 1. The triplex flat is only one residential house connected internally as per approved plans. The first level being unit no. 2103 consists of Living room, Kitchen and Dining Room. Please note there are no bedrooms on this level. 2. The second level being unit no. 2202 2203 are interconnected without any dividing walls and consists of only bedrooms and family area. There is no Kitchen or Dining area on this level. 3. Both the first and second level are interconnected with stairs going internally from lower level t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The mere submission of the assessee that the flats are connected internally and used by him as one residential house cannot fulfill the criteria laid down under section 54F of the Act. Accordingly, he rejected the claim of section 54F claimed by the assessee. 5. Aggrieved assessee preferred appeal before the Ld. CIT(A) and filed detailed submissions before him which is reproduced at Page No. 3 to 18 of the Appellate Order. After considering the detailed submissions of the assessee, Ld.CIT(A) analysed the findings of the Assessing Officer and observed that assessee has purchased three flats entering into an agreement with the builder to purchase Triplex flat and Ld. CIT(A) has also reproduced the diagram of the flats purchased by the assessee in his order at Page No. 23 and 24 of the Appellate order. After considering the submissions and acknowledging that as per the diagram that assessee has purchased three flats which are interconnected with stairs from Floor 21 to Floor 22 and the flats in Floor 22 are interconnected having only one kitchen rest of the flats consist of living area and rooms. He has rejected the claim made by the assessee that itself a single unit of residentia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of three flats only for identification purpose and as far as assessee is concerned assessee has purchased one single unit which satisfies the provisions of section 54F of the Act. 8. On the other hand, Ld. DR brought to our notice Page No. 9 of the Paper Book which is the sale agreement as per which assessee purchased three flats which is modified after the building approval acquired by the builder. Further, he submitted that the handing over letter contents does not match with the agreement. He supported the findings of the lower authorities. 9. Considered the rival submissions and material placed on record, we observe that assessee has sold the shares and out of the sale proceeds he purchased three flats with interconnectivity. We also verified the agreement submitted before us which clearly shows that assessee has purchased one triplex flat which consists of a common living area, common kitchen and rooms in the 22nd floor which is interconnected. From the agreement and the flat diagram clearly shows that all the three flats are interconnected with one living room, one kitchen and three rooms. After careful consideration of the facts on record and as per the provisions of section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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