SAROJ MAKAN,DELHI vs. INCOME TAX OFFICER, CIVIC CENTER, DELHI

ITA 6687/DEL/2025Status: DisposedITAT Delhi03 June 2026AY 2011-1211 pages
AI SummaryAllowed

What were the facts?

The assessee sold an immovable property for Rs. 2,52,00,000/-. She claimed that her 1/3 share of Rs. 84,00,000/- was paid to tenants for eviction and for purchasing another flat, resulting in no capital gain. The Assessing Officer disallowed this claim due to insufficient evidence.

What did the Tribunal hold?

The Tribunal held that payments made to tenants for eviction to enable the sale of property and convey clear title are deductible as an expense incurred wholly and exclusively in connection with the transfer. The evidence presented, including cheques, affidavits, and agreements, supported the assessee's claim.

What were the issues?

Whether payments made to tenants for eviction are deductible as an expense for computing capital gains, and if the assessee provided sufficient evidence to substantiate these payments.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 55(2)(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, DELHI

Before: SHRI S RIFAUR RAHMAN & SHRI ANUBHAV SHARMA

For Appellant: CA Sh. Mukul Gupta, Adv
Hearing: 19.05.2026Pronounced: 03.06.2026

PER ANUBHAV SHARMA, JM:

This appeal is preferred by the assessee against the order dated 01.09.2025 of the Ld. Addl/JCIT(A), Panchkula (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in DIN & Order No :

P a g e | 2 Saroj Makan (AY: 2011-12) ITBA/APL/S/250/2025-26/1080228869(1) arising out of the order dated 18.12.2018 u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by ITO, Ward-40(1), New Delhi for AY: 2011-12. 2. Brief facts of the case are that as per information available under NMS -non-filers category, the assessee had sold immovable property amounting to Rs. 2,52

The order continues below.

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