FAROOQ ABDULLA MERCHANT,MUMBAI vs. ITO 23 (1)(4), MUMBAI

ITA 7906/MUM/2019Status: DisposedITAT Mumbai02 May 2023AY 2014-1544 pages
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What did the Tribunal hold?

The Tribunal held that the assessee is eligible for exemption under Section 54 for the purchase of two residential houses, interpreting 'a residential house' to include plural. It also directed the Assessing Officer to allow 50% of the expenditure claimed for renovation and furnishing of the new properties.

What were the facts?

The assessee sold an immovable property and claimed capital gains exemption under Section 54 of the Income Tax Act for investing in two residential properties. The Assessing Officer disallowed part of the claim, and the CIT(A) also made certain disallowances.

What were the issues?

Whether the assessee can claim exemption under Section 54 for investment in more than one residential house, and the allowability of expenses incurred on renovation and furnishing of the new properties.

Which sections of the Income-tax Act were involved?

Section 54

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Income Tax Appellate Tribunal, MUMBAI BENCH “F”, MUMBAI

Before: SHRI S. RIFAUR RAHMAN, HONBLE & MS. KAVITHA RAJAGOPAL, HONBLEShri Vimal Punamiya Smt. Vranda U. Matkarni

For Appellant: Shri Vimal Punamiya
For Respondent: Smt. Vranda U. Matkarni
Pronounced: 02.05.2023

PER S. RIFAUR RAHMAN (AM)

1.

This appeal is filed by the assessee against order of the Learned Commissioner of Income Tax (Appeals)-32, Mumbai [hereinafter in short “Ld.CIT(A)”] dated 06.11.2019 for the A.Y.2014-15. 2. Brief facts of the case are, assessee filed his return of income declaring a total income of ₹.5,85,330/- on 14.07.2015. The case was 2 Farooq Abdulla Merchant selected for scrutiny and notices u/s. 143(2) and 142(1) of Income-tax Act, 1961 (in short “Act”) were issued and served on the assessee. In response AR of the assessee attended and submitted the relevant information as

The order continues below.

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