DEEPAK KATHARI,KANPUR vs. ACIT, CC-5, NEW DELHI

ITA 1205/DEL/2021Status: DisposedITAT Delhi06 August 2025AY 2017-18Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI VIMAL KUMAR (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the CIT(A) was correct in deleting the addition on account of LTCG as the assessee had rightly computed the capital gains as per Section 48 of the Income Tax Act. The AO's method of adding notional interest was not prescribed by the Act. The Tribunal also ruled that the assessee was eligible for deduction under Section 54F as they owned only one residential property at the time of transfer.

What were the facts?

The Assessing Officer (AO) added back a significant amount on account of Long Term Capital Gain (LTCG) and under Section 56(2)(vii)(c), treating interest on sale consideration received earlier as income. The assessee had sold property in 2007 but offered LTCG in 2017, claiming indexation benefits. The CIT(A) deleted these additions.

What were the issues?

Whether the AO was justified in re-computing LTCG by adding notional interest on sale consideration received in an earlier year, and whether the assessee was eligible for deduction under Section 54F when owning a share in another property.

Which sections of the Income-tax Act were involved?

Section 48,Section 56(2)(vii)(c),Section 54F,Section 49(4)

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Income Tax Appellate Tribunal, DELHI BENCH ‘C’: NEW DELHI

For Appellant: Dr. Rakesh Gupta, Advocate, Shri Somil Agarwal, Advocate, Shri Deepesh Garg, Advocate
For Respondent: Shri Dayainder Singh Sidhu, CIT DR
Hearing: 05.06.2025

PER S.RIFAUR RAHMAN, ACCOUNTANT MEMBER :

1.

These cross appeals are filed by the assessee against the order of ld. Commissioner of Income-tax (Appeals)-24, New Delhi [hereinafter referred to as ‘ld. CIT (A)] dated 29.07.2021 for Assessment Year 2017-18. 2. Since the issues are common and the appeals are connected, therefore, the same are heard together and being disposed off by this common order.

3.

First we deal with Revenue’s appeal and the Revenue has raised the following grounds of appeal :- “1) The Ld. CIT(A) erred in deleting the a

The order continues below.

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