HARSHADKUMAR MOHANLAL PATEL,AHMEDABAD vs. THE DY. CIT.CIRCLE-3(3), AHMEDABAD

ITA 1890/AHD/2025Status: DisposedITAT Ahmedabad18 September 2026AY 2013-148 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that while the assessee bore the entire improvement expense, it was for the entire property. Therefore, the deduction for capital gains should be limited to the assessee's proportionate share of ownership, as the benefit of improvement accrued to the property as a whole.

What were the facts?

The assessee claimed a significant cost of improvement for a jointly owned property sold. The Assessing Officer disallowed the entire claim due to lack of evidence and non-compliance from parties involved. The CIT(A) allowed only 1/10th of the claim, proportionate to the assessee's ownership share.

What were the issues?

Whether the entire cost of improvement incurred on a jointly owned property can be claimed by one co-owner against their capital gain, and the extent to which such expenditure is allowable.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 133(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI NARENDRA PRASAD SINHA & SHRI SANJAY KUMAR

For Appellant: Shri S N Divatia, AR & Shri Samir Vora, AR
For Respondent: Shri Amit Pratap Singh, SR-DR
Hearing: 09.09.2026Pronounced: 18.09.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the Assessee against the order of National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”] dated 19.08.2025 for the Assessment Years (A.Y.) 2013-14 in the proceeding u/s 143(3) of the Income Tax Act [hereinafter referred as “the Act”].

2.

The brief facts of the case are that the assessee had filed his original return of income for A. Y. 2013-14 on 27.09.2013 declaring total income of Rs.1,59,00,665/-. Thereafter, a revised return was filed on 13.02.2014 and again on 24.02.2014 declaring income of Rs. 1,33,69,028/-. The

The order continues below.

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