https://www.taxtmi.com/caselaws?id=773803 ITAT Delhi allowed the appeal regarding deduction u/s 54 of the Income Tax Act. The tribunal held that filing a claim for deduction u/s 54 in the original or revised return is not mandatory under the Act's provisions. The assessee was entitled to deduction of Rs.17,13,015/- as long-term capital gain from sale of Lucknow property was less than Rs.22,30,000/- paid for purchasing Delhi property, meeting section 54 requirements. The addition made by AO and confirmed by CIT(A) was deleted. Regarding addition u/s 56(2)(vii)(b), relief of Rs.86,66,666/- was granted subject to outcome of pending HC proceedings regarding validity of the 2005 agreement. en-us Thu, 12 Jun 2025 00:00:00 +0530 Sat, 28 Jun 2025 08:31:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773803 ITAT Delhi allowed the appeal regarding deduction u/s 54 of the Income Tax Act. The tribunal held that filing a claim for deduction u/s 54 in the original or revised return is not mandatory under the Act's provisions. The assessee was entitled to deduction of Rs.17,13,015/- as long-term capital gain from sale of Lucknow property was less than Rs.22,30,000/- paid for purchasing Delhi property, meeting section 54 requirements. The addition made by AO and confirmed by CIT(A) was deleted. Regarding addition u/s 56(2)(vii)(b), relief of Rs.86,66,666/- was granted subject to outcome of pending HC proceedings regarding validity of the 2005 agreement. Case-Laws Income Tax Thu, 12 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773803