Farmhouse Qualifies as Residential House: Delhi ITAT Upholds Section 54F Relief

ACIT Vs Rajat Bhandari (ITAT Delhi) Revenue appealed against CIT(A)’s order allowing deduction of Rs.2,36,96,898 u/s 54F in favour of Assessee. AO had denied exemption on two grounds: (i) Assessee allegedly owned more than one residential property at the time of transfer of original asset, & (ii) the new asset was a “farmhouse”, which AO considered ineligible as a “residential house”. AO also made an addition of Rs.32,61,606 on account of credit-card expenses treated as personal. CIT(A) examined all documents & held that AO proceeded merely on assumptions without any supporti...