SHREE SHREE ISWAR SATYANARAYANJEE & OTHER DEITIES,HOWRAH vs. ITO, NFAC, , DELHI

ITA 127/KOL/2026Status: DisposedITAT Kolkata22 April 2026AY 2022-20237 pages
AI SummaryAllowed

What were the facts?

The assessee sold an immovable property for ₹1,17,40,000 and invested a portion of the sale proceeds in Fixed Deposits (FDs). The Assessing Officer (AO) treated the entire sale consideration as short-term capital gain and added ₹67,68,102 to the assessee's income, disallowing the investment in FDs as per Section 11(1A). The CIT(A) upheld the AO's order.

What did the Tribunal hold?

The Tribunal held that investment in Fixed Deposits (FDs) qualifies as an investment in a capital asset under Section 11(1A) of the Income-tax Act. The Tribunal relied on various High Court decisions and a CBDT circular which acknowledge bank deposits as capital assets.

What were the issues?

Whether investment in Fixed Deposits (FDs) made from sale proceeds of a capital asset qualifies as acquisition of another capital asset under Section 11(1A) of the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 11(1A),Section 2(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

For Appellant: Shri Siddarth Jhajharia, AR
For Respondent: Shri S.B. Chakraborthy, DR
Hearing: 15.04.2026Pronounced: 22.04.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 14.11.2025 for the AY 2022-23. 2. The only issue raised by the assessee in the various grounds of appeal is against the order of ld. CIT (A) confirming the addition of ₹67,68,102/- as made by the ld. AO on the ground that the assessee has taxable capital gain which were not invested in Shree Shree Iswar Satyanarayanjee & Other Deities; A.Y. 2022-23 consonance with the provision of Section 11(1A) of the Income- tax Act, 1961 (the Act).

3.

The facts in brief are that the assessee filed the retu

The order continues below.

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