Appeal dismissed: Deduction under section 54F denied for multiple flats claim.

The appeal challenging the rejection of exemption under section 54F of the Income Tax Act-1961 for the assessment year 2014-15 was dismissed by the Income Tax Appellate Tribunal (ITAT) Pune. The ITAT upheld the decision of the Commissioner of Income Tax (Appeals) based on legal interpretations and precedents set by the Bombay High Court, allowing deduction for only one residential flat instead of multiple flats claimed by the appellant.

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Issues:
Appeal against rejection of exemption u/s 54F of the IT Act-1961 by the ld. Commissioner of Income Tax (Appeals)- 13, Pune for the assessment year 2014-15.

Analysis:
1. Facts of the Case:
The appellant, engaged in trading gold and silver jewelry, sold a residential property in Mumbai for Rs.2,33,00,000 during the assessment year 2014-15. The appellant claimed exemption u/s 54F of the IT Act-1961, stating the capital gains were reinvested in a residential apartment. The Assessing Officer denied the exemption as it was not claimed in the return of income initially.

2. Decision of the ld. CIT(A):
The ld. CIT(A) allowed the claim for exemption u/s 54, citing the decision of the Hon'ble Bombay High Court in the case of CIT v. Prithvi Brokers & Shareholders (P.) Ltd. The ld. CIT(A) analyzed the investments made in two separate flats in Pune by the appellant and concluded that only one flat was eligible for deduction u/s 54, totaling Rs.92,91,220.

3. Appellant's Appeal:
The appellant contested the rejection of exemption for the second flat, referring to a Co-ordinate Bench's decision in a similar case. The appellant claimed entitlement to exemption u/s 54 for multiple flats prior to an amendment.

4. Final Decision:
The ITAT Pune upheld the ld. CIT(A)'s decision, stating that the appellant could only claim deduction for one flat as per the decision of the Hon'ble Bombay High Court. The Tribunal dismissed the appeal, affirming that the ld. CIT(A)'s order was in line with the relevant legal precedents.

In conclusion, the appeal challenging the rejection of exemption u/s 54F of the IT Act-1961 for the assessment year 2014-15 was dismissed by the ITAT Pune, upholding the decision of the ld. CIT(A) based on legal interpretations and precedents set by the Hon'ble High Court.

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