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2020 (12) TMI 822 - AT - Income TaxDeduction u/s 54F - assessee has executed Joint Development Agreement with the builder - contention of the ld.AR is that since the assessee got allotted flats and it should be considered as investment in terms of 54F of the Act and it is to be granted - HELD THAT - In principle, we are in agreement with the contention of the learned Authorised Representative that the assessee is entitled for exemption u/s. 54F of the Act and all flats situated in single building to be considered as one residential house and deduction u/s. 54F is to be granted. This issue was considered by this Tribunal in the case of Chandrashekar Veerabhadraiah 2020 (12) TMI 348 - ITAT BANGALORE . In principle, the assessee is entitled for deduction u/s.54F of the Act in respect of investment made in multiple flats subject to production of relevant evidence by the a. before the Assessing Officer. Accordingly, the assessee shall furnish all the evidence in support of the claim of deduction u/s. 54F of the Act. The Assessing Officer has to satisfy himself the fulflment of other conditions laid down in Section 54F of the Act for granting the deduction u/s. 54F of the Act and ordered accordingly.
Issues Involved:
1. Dismissal of main grounds not pressed by the assessee. 2. Additional ground raised regarding reopening of assessment and deduction under Section 54F of the Income Tax Act, 1961. 3. Admissibility of additional ground for deduction under Section 54F. 4. Interpretation of Section 54F regarding eligibility for exemption and deduction in case of multiple residential units. 5. Requirement of relevant evidence for quantification of deduction under Section 54F. Issue 1: Dismissal of Main Grounds: The appeal filed by the assessee was directed against the order of Commissioner of Income Tax (Appeals)-7 for the Assessment Year 2006-07. The assessee did not press the main grounds raised before the tribunal, leading to the dismissal of those grounds as not pressed. Issue 2: Additional Grounds for Deduction under Section 54F: The assessee raised an additional ground concerning the reopening of assessment and the granting of deduction under Section 54F. The learned Authorised Representative did not press the ground related to the reopening of assessment. However, the contention regarding deduction under Section 54F was raised as an additional ground, stemming from the order of the lower authorities. Issue 3: Admissibility of Additional Ground for Deduction under Section 54F: The assessee argued that since the additional ground for deduction under Section 54F did not require investigation of new facts and was based on existing records, it should be admitted for adjudication. The Tribunal admitted this additional ground based on the precedence set by a Supreme Court judgment. Issue 4: Interpretation of Section 54F for Multiple Residential Units: The Tribunal considered the contention that all flats situated in a single building should be treated as one residential house for the purpose of deduction under Section 54F. Citing a previous Tribunal case and relevant legal provisions, it was determined that the assessee could be entitled to exemption under Section 54F for investment made in multiple flats, provided relevant evidence was produced before the Assessing Officer. Issue 5: Requirement of Relevant Evidence for Deduction under Section 54F: The Tribunal directed the assessee to furnish all relevant evidence in support of the claim for deduction under Section 54F. It was emphasized that the Assessing Officer should ensure the fulfillment of conditions specified in Section 54F before granting the deduction, and the issue was restored to the Assessing Officer for quantification purposes. In conclusion, the appeal of the assessee was allowed for statistical purposes, with the Tribunal emphasizing the importance of providing relevant evidence for the quantification of deduction under Section 54F of the Income Tax Act.
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