The Tax Publishers2019 TaxPub(DT) 6988 (Ahd-Trib) : (2020) 180 ITD 0149

INCOME TAX ACT, 1961

Section 54F Section 263

Super structure of block 'E' purchased by assessee comprised of 3 residential units and entire structure had been purchased by the assessee by a common deed of conveyance. Pr. CIT had wrongly construed 3 residential units as 3 residential houses, instead of 1 conjoint residential house and consequently, disputed by the eligibility of deduction under section 54F. AO having taken a plausible view in the matter, assessment order could not be treated as erroneous and in so far as prejudicial to the interest of revenue.

Revision under section 263 - Erroneous and prejudical order - Allowance of exemption under section 54F as regards investment in three residential units by a common deed of conveyance - CIT construed each residential unit as a separate residential house

Pr.CIT held assessment order to be erroneous and prejudicial to the interest of revenue on the ground that AO wrongly allowed exemption under section 54F as regards long-term capital gain invested by assessee in block +'C' of certain residential projects comprising of 3 residential houses.Held: Super structure of block 'E' purchased by assessee comprised of 3 residential units, and entire structure had been purchased by the assessee by a common deed of conveyance. Pr. CIT had wrongly construed 3 residential units as 3 residential houses, instead of 1 conjoint residential house and consequently, disputed by the eligibility of deduction under section 54F. AO having taken a plausible view in the matter, assessment order could not be treated as erroneous and in so far as prejudicial to the interest of revenue.

Relied:CIT v. K.G. Rukminiamma, (2011) 331 ITR 211 (Karn) : 2011 TaxPub(DT) 0429 (Karn-HC), CIT v. Gita Duggal, (2013) 357 ITR 153 (Del) : 2013 TaxPub(DT) 0960 (Del-HC), CIT v. Gita Duggal, (2014) 52 Taxmann.com 246 (SC) : 2018 TaxPub(DT) 3187 (SC), CIT v. Syed Ali Adil (2013) 352 ITR 418 (AP) : 2013 TaxPub(DT) 1290 (AP-HC) & CIT v. V.R. Karpagam, (2015) 373 ITR 127 (Madras) : 2014 TaxPub(DT) 4009 (Mad-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15

IN THE ITAT, AHMEDABAD BENCH

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