2000 (2) TMI 198

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...., 1996. 2. The brief facts of the case are that the assessee has sold his residential house for Rs. 12,10,250 and claimed deduction under s. 54 of the IT Act as the assessee has invested Rs. 5,34,850 in purchase of a flat No. 302 or 3rd Floor in 'Silva Croft' Building, plot No. 25A, I.C. Colony, Main Road, Borivli (West), Mumbai, from M/s Shreyans Developments, Mumbai, vide two separate deed of a....

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....ce space. The CIT(A) has upheld the AO's order and dismissed the assessee's appeal. 4. Now the assessee is in appeal before us. It was argued by the learned authorised representative that the terrace space of flat No. 302 is an integral and undivided part of the said flat, the purchase of flat and terrace space by two separate agreements was only for the reason of convenience of the transferor; d....

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....lso submitted that on the given facts and circumstances of the case, the provisions of s. 154 are not applicable when two views are possible. The lower authorities have erred in initiating and completing the proceedings under s. 154. In support of his argument, reliance was placed on the following case laws: (i) Indian & Eastern Newspaper Society vs. CIT (1979) 12 CTR (SC) 190 : (1979) 119 ITR 99....

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....ITR 726 (Bom); and (ii) M.H. Daryani vs. CIT (1993) 202 ITR 731 (Bom). Finally he argued that the AO has rightly invoked the provisions of s. 154 in disallowing the deduction for the terrace space amounting to Rs. 55,000 which was rightly upheld by the CIT(A). 6. We have carefully heard the rival submissions of both the parties and we find that the terrace is an integral and undivided part of f....