2025 (10) TMI 843

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....Assessment Year 2016-17. 2. The solitary grievance of the assessee is against the denial of deduction under section 54 of the Act in respect of reinvestment made in a residential property. 3. The relevant facts are that the assessee, an individual, filed his return of income on 04/08/2018 declaring total income of Rs. 85,60,120 comprising salary and income from other sources. The case was selected for scrutiny to verify the genuineness of capital gains and the corresponding claim of deduction under section 54. 4. The Assessing Officer issued a show-cause notice dated 26/12/2018, which went unanswered. Consequently, the assessee's claim of deduction under section 54, arising from the investment of Rs. 3,55,00,000 in the new resident....

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....ution of these presents. Rs. 1,61,45,000/- Rupees One Crore Sixty One lakhs & Forty Five thousand Only: Being paid as part payment on or before the execution of these presents. Rs. 3,55,000/- Rupees Three Lakhs and fifty five thousand only Being TDS 1% of the total consideration to be paid by the TRANSFEREE to the credit of the TRANSFEROR'S Income tax acct, u/s 194 IA of the Income Tax Act, 1961 Rs. 1,65,00,000/- Rupees One Crore & Sixty Five Lakhs Only: Being the balance full and final consideration, to be paid to the TRANSFERORS on or before the TRANSFERORS hands over all original documents along with the TRANSFERORS handing over the vacant and peaceful possession of the Said Flat Total Rs. 3,55,00,000/- (Rupee....

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.... by the learned CIT(A) cannot stand judicial scrutiny. Once the sale deed itself recorded the consideration of Rs. 3,55,00,000, acknowledged receipt of substantial part of the consideration by cheques, and annexed contemporaneous receipts, it is wholly incorrect to conclude that mode of payment was not disclosed. The law does not require needless formalism when substantive compliance is manifest. 13. Moreover, it was never the case of the Revenue, either at the assessment stage or at the first appellate stage, that the source of purchase of the new property was doubtful or unexplained. The controversy was confined only to the claim of deduction under section 54. The assessee's sale deed and supporting documents had already put the matter....