· During the year assessee sold 5 house properties and invested the sale consideration received in construction of another property. The assessee claimed deduction u/s 54F of the Act for investment in residential house against the capital gain on sale of house properties.
· The said deduction was not allowed to the assessee by the AO stating that the assessee had already claimed the deduction in earlier A.Y. for the investment made in construction of property at Bhatti Mines.
· The CIT(A) was of the view that the assessee was having only one residential house, other than the new asset at Bhatti Mines. Therefore, the CIT(A) allowed the claim of assessee of deduction u/s 54F of the Act.
· The Tribunal was also of the view that since the construction of the property at Bhatti Mines was still going on, it could not have been said to be another residential house owned by the assessee, and since the assessee was having only one residential house, the assessee was entitled for deduction u/s 54F of the Act.
· The Tribunal further affirmed the view of the CIT(A) that there was no bar on an assessee for claiming deduction u/s 54F of the Act for the second or third time in respect of the same property, if the cost of the property being purchased or constructed was within the capital gain arisen to the assessee.
· Therefore, the appeal of Revenue on this ground was dismissed by the Tribunal.
For further reading, refer the attachment.
Further Reading