https://www.taxtmi.com/caselaws?id=782626 ITAT upheld the CIT(A)'s order allowing Assessee's claim for deduction u/s 54 on the additional 205 sq.ft. acquired in a redevelopment project. The Tribunal held that the transaction constituted an exchange of capital asset, with the Assessee acquiring an additional identified area at an agreed rate under the development agreement, satisfying the requirements for investment in a residential house u/s 54. It rejected the AO's treatment of the additional area cost as part of the cost of acquisition of the old flat and disallowed the AO's reliance on arbitrary ready reckoner rates. Consequently, the addition made by the AO was deleted and Revenue's appeal dismissed. en-us Tue, 28 Oct 2025 00:00:00 +0530 Tue, 02 Dec 2025 08:35:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782626 ITAT upheld the CIT(A)'s order allowing Assessee's claim for deduction u/s 54 on the additional 205 sq.ft. acquired in a redevelopment project. The Tribunal held that the transaction constituted an exchange of capital asset, with the Assessee acquiring an additional identified area at an agreed rate under the development agreement, satisfying the requirements for investment in a residential house u/s 54. It rejected the AO's treatment of the additional area cost as part of the cost of acquisition of the old flat and disallowed the AO's reliance on arbitrary ready reckoner rates. Consequently, the addition made by the AO was deleted and Revenue's appeal dismissed. Case-Laws Income Tax Tue, 28 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782626