ITO v. Syed Ali Adil - Taxpublishers.in

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The Tax Publishers2012 TaxPub(DT) 0572 (Hyd-Trib) : (2012) 043 (II) ITCL 0445 INCOME TAX ACT, 1961 --Capital gains--Deduction under section 54Deduction whether allowable where two separate flats purchased--Assessee claimed deduction under section 54 towards purchase of two flats. According to AO assessee was entitled for deduction under section 54 only for one flat. As per report of income-tax inspector two flats were distinct and separate and were having two kitchens and there existed a passage in between. Commissioner (Appeals) allowed assessee's claim placing reliance in the case of CIT v. D. Ananda Basappa (2009) 27 (I) ITCL 305 (Karn-HC) : (2009) 309 ITR 329 (Karn-HC). Held: Issue was squarely covered in favour of assessee by judgment cited supra. Further, Tribunal had been consistently holding that though flats are located at different floors, but when they were combined each other, it should be construed as a single residential accommodation only. Accordingly appeal of revenue was dismissed. Income Tax Act, 1961, Section 54 INCOME TAX ACT, 1961 --Capital gains--Deduction under section 54Deduction whether allowable where two separate flats purchased--Assessee claimed deduction under section 54 towards purchase of two flats. According to AO assessee was entitled for deduction under section 54 only for one flat. As per report of income-tax inspector two flats were distinct and separate and were having two kitchens and there existed a passage in between. Commissioner (Appeals) allowed assessee's claim placing reliance in the case of CIT v. D. Ananda Basappa (2009) 309 ITR 329 (Karn-HC)Held: Issue was squarely covered in favour of assessee by judgment cited supra. Further, Tribunal had been consistently holding that though flats are located at different floors, but when they were combined each other, it should be construed as a single residential accommodation only. Accordingly appeal of revenue was dismissed. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 0572 (Hyd-Trib) : (2012) 043 (II) ITCL 0445

INCOME TAX ACT, 1961

--Capital gains--Deduction under section 54Deduction whether allowable where two separate flats purchased--Assessee claimed deduction under section 54 towards purchase of two flats. According to AO assessee was entitled for deduction under section 54 only for one flat. As per report of income-tax inspector two flats were distinct and separate and were having two kitchens and there existed a passage in between. Commissioner (Appeals) allowed assessee's claim placing reliance in the case of CIT v. D. Ananda Basappa (2009) 27 (I) ITCL 305 (Karn-HC) : (2009) 309 ITR 329 (Karn-HC). Held: Issue was squarely covered in favour of assessee by judgment cited supra. Further, Tribunal had been consistently holding that though flats are located at different floors, but when they were combined each other, it should be construed as a single residential accommodation only. Accordingly appeal of revenue was dismissed.

Income Tax Act, 1961, Section 54

INCOME TAX ACT, 1961

--Capital gains--Deduction under section 54Deduction whether allowable where two separate flats purchased--Assessee claimed deduction under section 54 towards purchase of two flats. According to AO assessee was entitled for deduction under section 54 only for one flat. As per report of income-tax inspector two flats were distinct and separate and were having two kitchens and there existed a passage in between. Commissioner (Appeals) allowed assessee's claim placing reliance in the case of CIT v. D. Ananda Basappa (2009) 309 ITR 329 (Karn-HC)Held: Issue was squarely covered in favour of assessee by judgment cited supra. Further, Tribunal had been consistently holding that though flats are located at different floors, but when they were combined each other, it should be construed as a single residential accommodation only. Accordingly appeal of revenue was dismissed.