2022 (1) TMI 485

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....to whether the CIT(A) is justified in confirming the addition made by the AO on account of denying exemption u/s. 54F of the Act. 3. Heard both the parties and perused the material available on record. We note that the assessee is a Veterinary Doctor having practice in Nagpur. The ld. AR, Shri Rajesh Loya submits that the assessee sold his plot of land for Rs. 75,00,000/- on 20-10-2012 and considering the cost of acquisition, declared Long Term Capital Gain at Rs. 73,76,957/-. The assessee invested Capital Gain arising out of said sale of immovable property in two adjacent residential flats in Lodha Builders at Dombivili (E), Mumbai. The said two flats adjacent to each other and located in the same building and floor and referred to Page....

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....the said two units as one flat by opening a door and made the same as single unit and drew our attention at Page No. 58 of the paper book. Further, he placed reliance in various case laws which are placed on record from Page Nos. 62 to 81 of the paper book. Further, he submits because of the conditions set out in Sale Deeds the assessee is not suppose to make major changes and drew our attention to specific conditions contained in Agreement to Sell at Point L which is at Page No. 4 and Point 6.1 at Page No. 6 and also Point 11.1 at Page No. 7 of the paper book. Apart from the case laws furnished through paper book, Shri Loya also placed on the decision of Hon'ble High Court of Bombay in the case of CIT Vs. Devdas Naik reported in 366 ITR 12....

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....28 shows that it is a 1BHK having carpet area of 195 Sq. Ft., one four wheeler open parking. The registered Agreement of Sale for Flat No. 702 which is at Page Nos. 29 to 57 of the paper book discloses the flat type is 1BHK having carpet area of 495 Sq.Ft. with one four wheeler open parking. The typical floor plan for the said two flats are at Page Nos. 24 and 52 for the said two flats respectively wherein we note that the flats are located adjacent to each other having common stair-case, lobby and lift etc. The conversion said to have been made by the assessee making the said two flats into one unit is in the plan of which at Page No. 58 wherein we note that the assessee made modification by opening common wall between two living and dinin....