CIT vs. GAURAV SAKLANI

IN THE HIGH COURT OF DELHI AT NEW DELHI . . . ITA 264/2012 . . . CIT ..... Appellant . Through Mr. Sanjeev Sabharwal, Sr. Standing Counsel. . . . versus . . . GAURAV SAKLANI ..... Respondent . Through Nemo. . . . CORAM: . HON'BLE MR. JUSTICE SANJIV KHANNA . HON'BLE MR. JUSTICE R.V.EASWAR . . . O R D E R . 02.05.2012 . . . The respondent-assessee, who is an individual and director and shareholder of a company M/s Idiscoveri Educational Services Private Limited, had sold shares of the said company and had earned profit in . form of capital gains of Rs.59,12,127 out of which Rs.49 lacs was received during the assessment year 2007-08. This amount was claimed to be exempt under Section 54F of the Income Tax Act, 1961 as the assessee had purchased a residential property at Gurgaon. . 2. It is not disputed that the assessee is an individual and income from capital gains was earned. The Assessing Officer, however, did not allow benefit under Section 54F of the Act on the ground that the assessee had included the newly purchased property in the schedule of business assets in the balance sheet. He has, however, recorded in the assessment order that the assessee had not claimed any depreciation but held that there was no ambiguity about the assessee?s intention. . 3. In our opinion, the appellate authorities have rightly accepted the stand of the assessee as the purchase of the residential property is not denied. The respondent assessee is an individual and merely showing the aforesaid newly acquired residential property in the list of assets in the balance sheet is not determinative. The appellate authorities have recorded that balance sheet was a personal balance sheet and the new asset was shown under the head ?fixed assets?. It is also observed that in the subsequent years the assessee had not claimed depreciation and in fact was residing in the property. The appeal is dismissed. We refrain from imposing cost as the appeal has been dismissed in limine. . . . SANJIV KHANNA, J. . . . . . . . R.V. EASWAR, J. . MAY 02, 2012 . VKR . $ 7. .