SMT. TEJAL KAUSHAL SHAH ,MUMBAI vs. INCOME TAX OFFICER WARD, 25(1)(5), MUMBAI

ITA 3303/MUM/2024Status: DisposedITAT Mumbai17 April 2025AY 2012-13Bench: MS. KAVITHA RAJAGOPAL (Judicial Member), SMT. RENU JAUHRI (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the deduction under Section 54 cannot be denied solely because the property was purchased jointly, provided no double deduction is claimed. For the deemed rental income, the Tribunal found that while the assessee failed to provide sufficient evidence of business use, the Assessing Officer did not correctly determine the annual letable value (ALV) based on municipal ratable value.

What were the facts?

The assessee claimed deduction under Section 54 for purchasing a new residential house jointly with her husband after selling a long-term capital asset. The Assessing Officer disallowed this deduction, stating that both the assessee and her husband claimed the deduction for the same property and that the old property was purchased by transferring two residential houses. Additionally, the AO made an addition for deemed rental income of an office premises.

What were the issues?

Whether the assessee is eligible for deduction under Section 54 for a jointly purchased property, and how the deemed rental income of a business premises should be calculated.

Which sections of the Income-tax Act were involved?

Section 54,Section 23

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Income Tax Appellate Tribunal, “E” BENCH, MUMBAI

For Appellant: Shri. Reepal Tralshawala, Shri. Hemanshu Joshi (Sr. DR)
Hearing: 21.01.2025Pronounced: 17.04.2025

Per Kavitha Rajagopal, J M: This appeal has been filed by the assessee, challenging the order of the learned Commissioner of Income Tax (Appeals) Delhi (‘ld. CIT(A)’ for short), National Faceless Appeal Centre (‘NFAC’ for short) passed u/s.250 of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2012-13. 2. The assessee has raised the following grounds of appeal: “A) Disallowance of deduction u/s.54 of the Act of Rs.1,30,30,729/- may be deleted:

1.

The Ld. CIT(A) (NFAC) erred in confirming disallowance of deduction u/s.54 of the Act of Rs.1,30,30,729/- without appreciating that- a) the Appellant has sold residenti

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