TaxTMI 
TaxTMI 
2026 (7) TMI 1636
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.... Income Tax Department, Delhi concerning Assessment Year (A.Y.) 2022-23. 2. Brief facts of the case are that the assessee is an individual, had filed its return of income for A.Y. 2022-23 on 29.07.2022 declaring a total income of Rs. 14,00,780/-. The case was selected for complete scrutiny under CASS due to specific risk parameters, including large agricultural income shown per acre and large agricultural income in a non-business ITR. 3. During the F.Y. 2021-22, the assessee sold two properties; a residential flat in Dwarka, Delhi for Rs. 1,40,00,000/- and agricultural land in Village Khauri Jamalpur, Faridabad for Rs. 1,25,00,000/-. In the return of income, the assessee treated the sale of agricultural land as exempt u/s. 10(1) consi....
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....d CIT(A) has erred both on facts and in law in confirming the disallowance of Rs. 16,61,677/- made by the AO denying the exemption claimed by the assessee under section 54 of the Income Tax Act while computing the capital gain on sale of residential house property. (ii) That the above said disallowance has been confirmed rejecting the detailed submissions and explanation along with the evidences brought on record by the assessee to justify that the amount has been deposited under the capital gain account scheme within the stipulated time as per the provisions of sub-section (2) of section 54 of the Act. 3. (i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming th....
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....f exemption claimed under section 54 of the Act by the assessee in respect of sale of a residential flat situated in Dwarka. At the outset, learned Counsel for the assessee submitted that during the year, the assessee had sold the residential property situated at Dwarka on 06.08.2021 for a consideration of Rs. 1,40,00,000/-. The said property was originally purchased on 20.09.2010 for Rs. 65,00,000/-. The assessee after indexation, claimed exemption under section 54 of the Act of the capital gain amounting to Rs. 16,61,677. In the assessment proceedings, the assessee furnished before the Ld. AO sale deed and purchase deed of the aforesaid property placed at PB Pg. Nos. 42-54 and 36-41 respectively. The assessee also submitted evidence regar....
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....ing compliance with the requirements of section 54(2) of the Act. In view of the above facts, the disallowance of Rs. 16,61,677 is not justified and deserves to be deleted. 9. On the other hand, learned DR relied upon the order of the CIT(A). 10. We have heard the rival submissions and perused the material available on record. We find from the bank statement and certificate of Punjab National Bank filed before us at pages 64 and 65 of the paper book, that the assessee made a deposit of Rs. 19,90,000/- under the Capital Gain Scheme on 06.08.2022. As the evidence, which was before the AO and the CIT(A), show the deposit made in PNB is on account of Capital Gain scheme, we are of the view that the denial of deduction u/s. 54 is not warra....
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.... record. The assessee has filed before us a copy of google map showing aerial distance measured from Khori Jamalpur and Faridabad. We are of the considered view that the matter of whether the land was situated with 8 kms of the local limits of the Faridabad municipality be remitted back to the AO for verification and adjudication afresh. Ground 3 is allowed for statistical purposes. 15. Next Ground is with regard to the computational error made by AO in the computation sheet while calculating the income under the head capital gain. At the outset, learned Counsel for the assessee submitted that the assessee filed the return of income on 29.07.2022 declaring total income of Rs. 14,00,780/-, comprising income under the head "Capital Gains" ....