2019 (4) TMI 1222

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....-05 on 11-11-2011, in response to notice u/s. 148 of the Act admitting capital gain of Rs. 5,25,384/- and claimed deduction u/s. 54F of the Act for Rs. 8,25,920/-. Scrutiny assessment was completed u/s. 143(3) r.w.s. 147 of the Act on 31-03-2004 assessing the Long Term Capital Gain at Rs. 38,00,484/-. The assessee filed an appeal before the CIT(A), who directed the Assessing Officer to calculate the capital gain based on the value of the land surrendered by the assessee in the development agreement with a builder. 2.1. With regard to assessee's claim of deduction u/s. 54F of the Act, the CIT(A) granted partial relief by holding that ground and first floors were commercial, whereas the second floor was a residential area and that the asse....

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....dopted and therefore, the findings of CIT(A) had attained finality and the Assessing Officer could not have re-visited the issue in the order passed consequent to the order of ITAT. 3. Taking note of the same, the CIT(A) passed order u/s. 154, modifying the earlier order of CIT(A), holding that the building as a commercial building and therefore, the assessee was not eligible for deduction u/s. 54F of the Act. After taking the same into consideration, appeal of the assessee against the assessment order u/s. 143(3) r.w.s. 254 of the Act was dismissed. 3.1. Now, the assessee is in appeal before the Tribunal both against the order u/s. 154 and also the appellate order against the assessment order u/s. 143(3) r.w.s. 254 of the Act. 4. ....

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.... for deduction u/s. 54F of the Act. The CIT (A) therefore, rectified the earlier order u/s. 154 on the basis of the findings of Assessing Officer. No doubt, u/s. 154 of the Act, only mistakes apparent from record can be rectified and if an order u/s. 154 has to be passed after long drawn arguments, then, it cannot be said that there is a mistake apparent from record. However, except for relying on the earlier order of the CIT ()A), the assessee has brought on record any evidence to demonstrate that the two units on second floor of the building were residential units. On the contrary, AO has brought on record that the entire building was a commercial building and the assessee was entitled to office space on second floor of the building. T....