BISWARANJAN SEN,MUMBAI vs. INT TAX WARD 4(2)(1) , MUMBAI

ITA 1527/MUM/2026Status: DisposedITAT Mumbai17 June 2026AY 2017-1811 pages
AI SummaryDismissed

What were the facts?

The assessee claimed exemption under Section 54 of the Income Tax Act for capital gains from property sale. The Assessing Officer (AO) restricted the exemption because unutilized capital gains were not deposited in the Capital Gains Account Scheme before the return filing due date.

What did the Tribunal hold?

The Tribunal held that the condition of depositing unutilized capital gains in the Capital Gains Account Scheme before the due date of filing the return is mandatory, as per Section 54(2) of the Act. The CIT(A)'s order, which followed the jurisdictional High Court's decision on this point, was confirmed.

What were the issues?

Whether the deposit of unutilized capital gains in the Capital Gains Account Scheme before the due date of filing the return is a mandatory condition for claiming exemption under Section 54. Whether the two adjacent residential units can be considered as a single residential unit for the purpose of Section 54 exemption.

Which sections of the Income-tax Act were involved?

Section 54,Section 54(2),Section 139(1),Section 234B,Section 234D

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE INCOME-TAX APPELLATE TRIBUNAL, MUMBAI “I” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER Biswaranjan Sen vs. ITO, Int Tax Ward 4(2)(1) 297 Ramakrishna Mission Pallay, Kautilya Bhavan, BKC, Mumbai.- Near Thakur Bari Rajpur Parganas, 400051. Sonarpur, South 24 Parganas, West Bengal-700150. PAN/GIR No: AAGPS7643R (Appellant) (Respondent) Assessee by Shri Nikhil Tiwari/Ms. Palak Mehta Revenue by Shri Sridhar G. Menon (Sr. AR) Date of Hearing 17.06.2026 Date of Pronouncement 10.09.2026

O R D E R PER BIJYANANDA PRUSETH, AM:

This appeal filed by the assessee emanates from the order passed u/s 250

of the Income-tax Act, 1961 (in short, ‘Act’) by the Commissioner of Income Tax,

Appeal-58, Mumbai [in short, ‘CIT(A)’], dated 15.02.2024 for the assessment

year (AY) 2017-18. 2. The grounds of appeal raised by the assessee are as under:

“General Ground:

1 erred in assessing the total income of the Appellant at Rs. 93,59,140 as against Rs. 4,20,830 offered to tax by the Appellant in the Return of Income on account of disallowance of exemption u/s 54 of the Act;

Not passing draft assessment order thereby leading to assessment p

The order continues below.

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