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TMI Blog2024 (8) TMI 823X X X X Extracts X X X X X X X X Extracts X X X X ..... National e-assessment Centre (NEAC), Delhi, order passed under section 143(3) read with section 144B of the Act, date of order 29/12/2022. 2. The revenue has taken the following grounds of appeal:- "(i) "Whether On the facts and circumstances of the case and in Law, the Ld CIT(A) erred in allowing deduction u/s 54 F amounting to Rs. 9,50,16,715/- treating investment in two flats as one residential house by not appreciating the facts that as per the amended provision of section 54F{1} with effect from 01.04,2015, the assessee was allowed to invest and claim deduction under said section in respect of only one residential flat. (It) Whether. On the facts and circumstances of the case and in Law, the Ld CIT(A) erred In allowing deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ai. The developers are 'M/s Akshar Realtors'. The agreement for sale was prepared on the basis of combined flats and treated both the flats as one and total consideration of the flats amounting to Rs. 12,54,00,000/-. The assessment was initiated and the Ld.AO rejected the assessee's plea for treating the two flats as one flat. As per the amendment to section 54F, when investments is made in multiple flats in the same residential complex, are not treated as a single flat w.e.f. A.Y. 2014-15. Thereafter, consequent to substitution of words "constructed residential house" by Finance Act (No.2) Act with effect from 01/04/2015, for the phrase, "constructed one residential house in India". Accordingly, only one flat was duly accepted for exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y was negative. Although the assessee is allowed to combine two flats as a single unit, this issue has not been physically verified by any revenue authorities. The Ld.AO has expressed the view that both flats cannot be combined. Thus, there is contradiction between parties on facts. Consequently, we are remitting the matter to the file of the learned AO with a specific directive. We instruct the ld. AO to carry out a physical verification of the flats. If both flats are combined, then the assessee should be given deduction u/s 54F of the Act.
5. In the result, the appeal of the assessee bearing ITA No.659/Mum/2024 is allowed for statistical purposes.
Order pronounced in the open court on _____ day of August, 2024. X X X X Extracts X X X X X X X X Extracts X X X X
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