Sec. 54F of the Income-tax Act, 1961 - Capital gain – Assessee filed the appeal against the order of CIT(A) in confirming disallowance u/s. 54F of the IT Act, 1961 Rs.64,22,882/-. The assessee is an individual and engaged in the business of letting out property on rent and having income from time deposits with bank and declared income under the head capital gain at Rs. 23,84,101 after claiming the exemption under section 54F of the Act at Rs. 1,08,00,000.00. The assessee contended that he has made investment in 2 bungalows which are adjacent to each other. The AO was of the view that the assessee can claim the exemption under section 54F of the Act with respect to the investment in one bungalow only. Accordingly, the AO computed the exemption under section 54F of the Act with respect to one bungalow only amounting to Rs. 43,77,118.00 and thus, he disallowed the excess claim under section 54F of the Act for Rs. 64,22,882.00. The AO accordingly added the excess by the assessee to the total income of the assessee. CIT (A) confirmed the order of the AO. ITAT allowed the appeal of the assessee holding that ”the assessee is entitled for the exemption provided under section 54F of the Act“. Hence, directed the AO to delete the addition made by him. - MOHAMMADANIF SULTANALI PRADHAN V/s DY. CIT - [2020] 181 ITD 238 (ITAT-AHMEDABAD)