ITAT Delhi Permits CG Exemption on Same Amount Used for New House Acquisition

The Delhi Bench of the Income Tax Appellate Tribunal permitted the capital gain exemption under section 54 of the Income Tax Act on the basis of the amount identical to the capital gains that would be utilised for the acquisition of the new house.

The two-member bench of Yogesh Kumar US (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member) has seen that the agreement for sale was signed dated 8th August 2014, along with that the payments would get finished by the date 8th October 2014.

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The petitioner, the commissioner of the income tax appeals has mistaken in law and as per the facts without acknowledging the submission along with additional documentary proof that the petitioner submitted and permitted the deductions which have been claimed by the petitioner under section 54.

On the date 13th of July 2016, the taxpayer furnished the Income tax return which shows an income of Rs 21,98,100. For the assessment proceedings, the assessing officer marked that the taxpayer would claim for the deduction of Rs 1,13,88,413 under Section 54 of the Income Tax Act, 1961.

The taxpayer would incur payments for booking on the date 10.06.2014 of Rs.10 lakhs and 19.06.2014 of Rs.15 lakhs. Till November 4, 2014, the remaining payments summed to Rs 1,33,74,400.

Under section 54F of the income tax act, the capital gains on the transfer of some precise capital assets would not get levied for the case of investment in residential houses.

The tribunal laid on section 54F and permitted the petition of the taxpayer.