RACHNA JAIN,DELHI vs. ITO, JAIPUR

ITA 1890/JPR/2025Status: DisposedITAT Jaipur24 August 2026AY 2015-1614 pages
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What were the facts?

The assessee sold a plot and claimed exemption under Section 54F for investing in a new residential flat. The Assessing Officer and CIT(A) denied the exemption, citing violations of Section 54F(4) regarding timely investment and deposit in the Capital Gains Account Scheme, as well as issues with joint ownership and proof of payment.

What did the Tribunal hold?

The Tribunal held that the assessee had fulfilled the substantive condition of investing in a new asset within the prescribed period. It ruled that non-deposit in the Capital Gains Account Scheme under Section 54F(4) is procedural and does not debar the assessee from claiming the deduction if the substantive conditions are met. The Tribunal also found the denial based on joint ownership and proof of payment to be factually incorrect.

What were the issues?

Whether the assessee is eligible for deduction under Section 54F when the unutilized capital gain was not deposited in the Capital Gains Account Scheme, and whether the joint purchase of property affects the claim.

Which sections of the Income-tax Act were involved?

Section 54F,Section 54F(4),Section 139(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, “B” BENCH, JAIPUR

Before: SMT. ANNAPURNA GUPTA & SHRI UDAYAN DASGUPTA

For Respondent: Smt. Namita Patel, JCIT
Hearing: 01.07.2026Pronounced: 24.08.2026

PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER:

The present appeal has been filed by the assessee against the order passed by the Office of the Commissioner of Income Tax (Appeals), ADDL/JCIT(A), Panaji (hereinafter referred to as “Ld. CIT(A)”), dated 16.10.2025 under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

P a g e | 2 Rachna Jain

2.

We have noted that the assessee has filed 14 grounds of appeal before us all of which are argumentative. Learned counsel for the assessee admitted before us that the solitary issue raised in the above grounds pertained to denial of grant of exemption/deduction under Section 54F of the Act against the capital gains earned by the assessee. He co

The order continues below.

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