SARALA RAJKUMAR JAIN,VADODARA vs. THE ITO, WARD-1(2)(2), VADODARA

ITA 2057/AHD/2025Status: DisposedITAT Ahmedabad08 September 2026AY 2011-127 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee was not eligible for deduction under Section 54 as the purchased flats were incomplete and the conditions for claiming the deduction were not fulfilled. The initiation of penalty proceedings was consequential and thus dismissed.

What were the facts?

The assessee did not file her return of income for AY 2011-12. The case was reopened as she had sold an immovable property and not offered capital gains. The assessee claimed deduction under Section 54 for purchasing two new flats, which was disallowed by the AO.

What were the issues?

Whether the assessee was eligible for deduction under Section 54 for the purchase of new flats, and whether the reopening of the assessment under Section 147 was valid.

Which sections of the Income-tax Act were involved?

Section 54,Section 143(3),Section 147,Section 148,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: SHRI NARENDRA PRASAD SINHA & SHRI SANJAY KUMAR

For Appellant: Shri Manan Agarwal, AR
For Respondent: Shri Rakesh Rathi, SR-DR
Hearing: 25.08.2026Pronounced: 08.09.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal filed by the Assessee is directed against the order of Addl/JCIT (Appeal), Prayagraj [hereinafter referred to as “Addl. CIT(A)”] dated 28.08.2025 for the Assessment Year (A.Y.) 2011-12 in the proceeding u/s 143(3) r.w.s. 147 of the Income Tax Act [hereinafter referred as “the Act”].

2.

The brief facts of the case are that the assessee did not furnish her return of income for A.Y. 2011-12. The case of the assessee was reopened on the basis of information received by the AO that the assessee had sold an immovable property during the year for a Sarala Rajkumar Jain Vs ITO, AY- 2011-12 2 consideration o

The order continues below.

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