G N MANGA RAJU,VISAKHAPATNAM vs. THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-1(1), VISAKHAPATNAM

ITA 56/VIZ/2026Status: DisposedITAT Visakhapatnam17 July 2026AY 2017-1822 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the amendment to Section 54F restricts exemption to one residential house. However, it remanded the matter to the AO to determine the indexed cost of the demolished building, allow proportionate stamp duty, and verify the eligibility for exemption under Section 54F for one residential unit with the higher investment.

What were the facts?

The assessee claimed capital gains exemption under Section 54/54F for investing in two residential flats after demolishing a building on the transferred property. The Assessing Officer disallowed the exemption, and the CIT(A) upheld this decision, stating the property was vacant land at the time of transfer.

What were the issues?

Whether the demolition of a building is an integral part of the transaction for capital gains computation, and whether exemption under Section 54F is available for investment in multiple residential units post-amendment.

Which sections of the Income-tax Act were involved?

Section 54,Section 54F,Section 45,Section 48

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH,

Before: SHRI RAVISH SOOD, HON’BLE & SHRI OMKARESHWAR CHIDARA, HON’BLE

For Respondent: Shri Nilanjan Dey, CIT(DR)

PER RAVISH SOOD, JM: The present appeal filed by the assessee is directed against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal

ITA 56/VIZ/2026 G N MANGA RAJU

Centre, Delhi, [for short, “CIT(A)]’’ dated 18/11/2025, which in turn arises from the order passed by the Assessin

The order continues below.

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