9911796707
TMI Blog2024 (4) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... SS to verify the issue of "Capital Gains Deduction Claimed". Assessee had filed his return of income for the A.Y. 2020-21 declaring an income of Rs..92,85,280/- on 18.01.2021. Accordingly, notices under section 143(2) and 142(1) of Income-tax Act, 1961 (in short "Act") were issued and served on the assessee. In response, Authorised Representative attended and submitted the relevant information as called for. 3. The Assessing Officer observed from the Computation of Income for the year under consideration that the assessee has claimed deduction under section 54F of the Act amounting to Rs..4,72,22,936/- against Long Term Capital Gain on sale of shares. In support of deduction claimed under section 54F of the Act, the assessee has uploaded a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interconnected with stairs going internally from lower level to upper level, duly marked on the floor plan copy. We therefore submit that there is unity of structure with a common living room, common passage, interconnected stairs, a common kitchen and dining area. As per the approved plans, the said triplex flat used only as one residential flat and assessee's is using the same as one residential flat. The said flat is also purchased by a single agreement to sell dated 23.12.2020. You will also kindly observe from the possession letter given by the Vendor/Developer that they have given possession to the assessee mentioning the same as a "triplex unit (unit being singular and one residential house). A copy of the floor plan copy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entary evidence issued by third party such as building society, builder, tehsil office, municipal corporation etc. which can substantiate that the flats are not different residential units and are part of only one residential house. 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 findin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds in its appeal: - "1. On the facts and circumstances of the Appellant's case and in law the Id. CIT (A) erred in confirming the action of the ld.AO in holding that the residential units purchased by the appellant are separate and cannot be considered as one residential house for claiming exemption u/s 54F, for the reasons mentioned in the impugned order or otherwise. 2. On the facts and circumstances of the Appellant's case and in law the ld. CIT (A) erred in confirming the action of ld. A.O. in disallowing an exemption of Rs. 4,72,22,936/- claimed u/s. 54F of the Act, for the reasons mentioned in the impugned order or otherwise. 3. The Appellant craves leaves to alter, amend, withdraw or substitute any ground or ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ares 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chased a residential flat which may consists of more than one block of flats. 12. We observe from the assessment order in which Assessing Officer relies on the case of CIT v. Raman Kumar Suri [2013] in which the Hon'ble Bombay High Court has decided in favour of assessee with the observation that "two flats were joined together before the respondent assessee became the owner of two flats. The certification from the society also established the fact that two flats Nos. 416A and 516A were joined together and were considered as one residential house" the Assessing Officer accepted the above decision and observed that the assessee has not submitted a certificate from the society, builder, tehsil office from municipal corporation. However, we o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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