2026 (4) TMI 1688

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....ppeal filed by the assessee against the assessment order dated 21.05.2020 passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") by the DCIT, Circle 1, Thiruchirappalli., (hereinafter referred to as "AO"), pertaining to Assessment Year (A.Y.) 2015-16. 2. The brief facts as per the records is that the assessee is an individual and filed his return of income for the impugned A.Y.2015-16 on 30.06.2016 admitting a total income of Rs. 24,31,780/- under the head house property, Capital gain and other sources by claiming refund of Rs. 1,76,632/-. The assessee's wife has sold her house property for a consideration of Rs. 75.00 Lakhs during the financial year 2014-15. The return of income filed by the assessee, the c....

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....f the submission by the assessee, the ld.CIT(A) converted the additions from protective basis to substantive basis as per para 5.2.2 of the order and also rejected the claim of the TDS by confirming the order of the AO by passing an order dated 11.11.2025. 6. Aggrieved by the order of the ld.CIT(A), the assessee filed an appeal before us by raising the following grounds of appeal: 1. The order of the NFAC, Delhi dated 11.11.2025 vide DIN & Order No. ITBA/NFAC/S/250/2025-26/1082462365(1) for the above-mentioned Assessment Year is contrary to law, fact and in circumstances of the case. 2. The NFAC, Delhi erred in confirming the assumption of jurisdiction under Section 147 of the Act and consequently erred in confirming th....

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....ence ought to have appreciated that the sustenance of disallowance of the said deduction relatable to re-investment in new residential house was wrong, erroneous, incorrect, invalid, unjustified and not sustainable both on facts and in law. 8. The NFAC, Delhi failed to appreciate that having not disputed the fact of creation of new residential house, the technical mistake in claiming deduction in terms of Section 54F of the Act as against the claim of deduction under Section 54 of the Act could not considered as fatal to the said claim, keeping in mind the purposive legislation, approving the utilisation theory. 9. The NFAC, Delhi failed to appreciate that purposive legislation in contra distinction to the technical consid....

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....ciate that disputed disallowance forming part of the re-assessment made on protective basis in the absence of any valid substantive assessment made elsewhere would vitiate the re-assessment order passed in its entirety. 14. The NFAC, Delhi failed to appreciate that the entire re-computation of taxable total income was wrong, erroneous, incorrect, invalid, unjustified and not sustainable both on facts and in law. 15. The NFAC, Delhi failed to appreciate that having not adhered to the prescription of faceless regime, the consequential appellate order passed should be reckoned as bad in law. 16. The NFAC, Delhi failed to appreciate that there was no proper opportunity given before passing of the impugned order and an....

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....ns in question arise from the sale of an immovable property which admittedly stands in the name of the assessee's wife. However, the assessee has offered the said capital gains in his return of income and claimed exemption u/s.54F of the Act. The AO, while framing the reassessment, disallowed the claim of exemption primarily on the ground that the asset transferred was a residential house and therefore outside the purview of section 54F, and further on account of failure on the part of the assessee to furnish supporting evidences. Significantly, the AO made such addition only on a protective basis, thereby indicating a lack of certainty as to the correct person in whose hands the income is liable to be assessed. 11. It is a settled posit....

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....itions, including the nature of the asset transferred and the investment made in specified assets. The AO has rejected the claim both on legal and factual grounds, however, without bringing sufficient material on record to conclusively establish the ineligibility of the assessee. At the same time, the assessee has also failed to place adequate evidence before the lower authorities to substantiate the claim. Therefore, this issue, in our view, requires fresh examination at the level of the AO after affording due opportunity to the assessee to produce necessary evidences. 14. With regard to the denial of TDS credit amounting to Rs. 1,66,619/-, we find that the same has been disallowed merely on account of mismatch of PAN, as the TDS pertai....