VEENA CHADHA,DELHI vs. ASSESSING OFFICER, NEW DELHI

ITA 5762/DEL/2026Status: DisposedITAT Delhi28 September 2026AY 2015-1611 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee could not be denied the benefit of Section 54 merely because the purchase could not be completed due to circumstances beyond her control, especially when payments were made within the stipulated period. The matter was restored to the AO for verification of LTCG computation and consideration of the Section 54 claim.

What were the facts?

The assessee, a non-filer for AY 2015-16, sold an immovable property and claimed deduction under Section 54 for reinvestment in a new property. The Assessing Officer (AO) initiated reassessment proceedings, and the CIT(A) upheld the reassessment and denied the Section 54 exemption. The assessee argued that the delay in property possession was due to builder insolvency, beyond her control.

What were the issues?

Whether the assessee is eligible for Section 54 exemption when property possession is delayed due to builder insolvency, and whether the reassessment proceedings were validly initiated.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 148A,Section 148,Section 54

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, E: NEW DELHI

Before: SHRI VIMAL KUMAR & SMT. RENU JAUHRI

For Appellant: CA &
For Respondent: Shri Tarun Sharda, Sr. DR
Hearing: 08.09.2026Pronounced: 28.09.2026

Per Renu Jauhri, Accountant Member:

This appeal by the assessee is directed against the order dated 20.12.2025 of the National Faceless Appeal Centre, Delhi [hereinafter referred to as the ‘Ld. CIT(A)] arising out of the assessment order dated 04.01.2024 passed under section 147 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by 1 Veena Chadha . Assessment Unit, Income Tax Department (hereinafter referred to as the ‘AO’) pertaining to Assessment Year (A.Y.) 2015-16. 2. Grounds of appeal filed by the Assessee are reproduced as under:

“1. That on the facts and in the circumstances of the case and in law, the Learned Commissioner of Incom

The order continues below.

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