INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Rectification of mistake - Non-consideration by Tribunal as regards applicability of the proviso to section 54F(1) -

Assessee contended that Tribunal decided issue as regards deduction under section 54F against assessee as per the provisions of proviso a (ii) of section 54F(1) without considering proviso (b). She contended that even if she was owning more than one residential house other than new asset on date of the transfer of original asset, it was to be seen as to whether income from such residential houses is chargeable under the head “Income from house property”. According to assessee, since that aspect was not examined by Tribunal, therefore, there was an apparent mistake in Tribunal's order. Held: Assessee purchased two house properties and one of the two properties was new asset for which deduction was claimed under section 54F. Proviso will be applicable if condition prescribed in Proviso (b) that income is taxable under the head “Income from House Property” for the second house is satisfied. In Tribunal's order, there was no discussion or finding on that aspect as to whether income from property purchased on was chargeable to tax under the head 'income from house property' or not. There was apparent mistake in Tribunal's order and same was recalled.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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