USHA RANI LAXMESHWAR,BENGALURU vs. CIT(A), DELHI

ITA 656/IND/2025Status: DisposedITAT Indore14 May 2026AY 2016-177 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the exemption under Section 54 cannot be denied solely for not depositing the capital gain in the Capital Gains Deposit Scheme if the investment in the new house was made within the prescribed period. The deposit scheme is a procedural condition, not a substantive one that overrides timely investment.

What were the facts?

The assessee claimed exemption under Section 54 for purchasing a new house. The Assessing Officer (AO) initially allowed this exemption but later re-opened the case and disallowed it, stating the investment was made after the due date for filing the return and the Capital Gains Deposit Scheme was not utilized. The CIT(A) upheld the AO's disallowance.

What were the issues?

Whether the exemption under Section 54 for investment in a new house can be denied for non-compliance with the Capital Gains Deposit Scheme when the investment is made within the stipulated period.

Which sections of the Income-tax Act were involved?

Section 54,Section 139(1),Section 147,Section 148A,Section 142(1),Section 143(3),Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI

For Appellant: Shri Govind Rinwa, AR
For Respondent: Shri Ashish Porwal, Sr. DR
Hearing: 27.05.2026Pronounced: 14.05.2026

Per B.M. Biyani, A.M.:

Feeling aggrieved by appeal-order dated 23.06.2025 passed by learned Commissioner of Income-tax (Appeal), NFAC, Delhi [“CIT(A)”], which in turn arises out of assessment-order dated 13.03.2024 passed by learned Assessment Unit of Income-tax Department [“AO”] u/s 144 r.w.s. 144B of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2016-17, the assessee has filed this appeal on following grounds:

Usha Rani Laxmeshwar ITA No. 656/Ind/2025 – AY: 2016-17 “Ground 1. That the disallowance of exemption of Rs. 1,11,25,790/- claimed u/s 54, as made by the learned AO and 1 upheld by the honourable CIT(A) be held t

The order continues below.

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