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TMI Blog2020 (1) TMI 1489X X X X Extracts X X X X X X X X Extracts X X X X ..... ereinafter referred to as "the Act") dated 08/12/2017 relevant to Assessment Year (AY) 2015-16. 2. The assessee has raised the following grounds of appeal:- 1.01. That Learned CIT(Appeal)-6, Ahmedabad has erred in confirming disallowance u/s.54F of the Income Tax Act, 1961 Rs. 64,22,882/-. 1.02. That various reasons advanced by Learned CIT(Appeal)-6 Ahmedabad while confirming disallowance of claim are contrary to the facts and circumstances of the case. 1.03. Therefore disallowance of Rs. 64,22,882/- u/s.54F of the Income Tax Act5, 1961 confirmed by Learned CIT(Appeal)-9, Ahmedabad deserves to be deleted. 2.00 The appellant craves leave to add, amend, alter, edit, delete, modify any of the grounds of appeal at the time of or before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngalows are in the same society, adjacent to each other. As such both the bungalows are one unit for the residential purposes. Therefore, he claimed that he is entitled for the deduction/ exemption for both the bungalows under section 54F of the Act. 5.1. However, the learned CIT(A) observed that there is an amendment under the provisions of section 54F of the Act where the expression previously used "a residential house" has been substituted with one residential house. Such amendment is effective with effect from assessment year 2015-16 i.e. the year under consideration. Accordingly the learned CIT(A) rejected the contention of the assessee and confirmed the order of the AO. Being aggrieved by the order of the learned CIT (A) the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the area of the residential property. It means, one assessee can buy huge bungalow/property say thousand square meters and can claim the deduction subject to the conditions. Similarly, the other assessee on the other hand acquired two different residential properties adjacent to each other but both the properties put together has only two hundred square meters but he will be extended the benefit of the exemption with respect to one unit only because of the reason that there are two different properties based on registry documents. 7.2. There can be a situation that the family of the assessee is quite large, comprising of several members in the family and therefore he needs two properties adjacent to each other to accommodate his family me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esidential building to seek exemption of capital gain tax. However, the proviso to section 54 of the Income-tax Act, lays down that if the assessee has already one residential building, he is not entitled to exemption of capital gains tax, when he invests the capital gain in purchase of additional residential building." 7.4. In view of the above and after considering the facts in totality, we are of the view that the assessee is entitled for the exemption provided under section 54F of the Act in the present facts of circumstances. Hence, we set aside the finding of the learned CIT (A) and direct the AO to delete the addition made by him. Thus, the ground of appeal of the assessee is allowed. 8. In the result, the appeal of the Assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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