PAYAL BANSAL,NEW DELHI vs. ITO WARD 41(5), NEW DELHI

ITA 1254/DEL/2019Status: DisposedITAT Delhi13 March 2026AY 2015-16Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI NAVEEN CHANDRA (Accountant Member)8 pages
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What did the Tribunal hold?

The Tribunal held that the expression "one residential house" in Section 54 encompasses multiple units within the same building, such as the ground and first floor. Therefore, the assessee was entitled to deduction on both floors and the cost of construction.

What were the facts?

The assessee claimed deduction under Section 54 of the Income Tax Act on the capital gains from the sale of a residential property. The AO disallowed part of the deduction, considering the investment in two separate floors of a new property as two distinct residential houses. The CIT(A) upheld the denial for one floor but allowed a partial benefit on construction cost.

What were the issues?

Whether investment in two separate floors of a new property can be considered as investment in "one residential house" for claiming deduction under Section 54 of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250,Section 54,Section 54F

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘F’, NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

For Appellant: Shri Salil Kapoor, Adv. Mr. Shivam Yadav, Adv
For Respondent: Ms. Harpreet Kaur Hansra, Sr. DR
Hearing: 19.02.2026Pronounced: 13.03.2026

PER NAVEEN CHANDRA [A. M]: The above captioned appeal is preferred by the assessee against

the order dated 18.12.2018, passed by Learned Commissioner of Income Tax(Appeals)-14, New Delhi (hereinafter referred to as ‘ld.

CIT(A)), under section 250 of the Income Tax Act, 1961 [hereinafter

referred to as, “Act”] for Assessment Year 2015-16. The assessment

order in this appeal is passed by the Assessing Officer [for short, AO]

under section 143(3) of the Act. Smt. Payal Bansal

2.

The assessee has raised following grounds of appeal:-

1.

That assessment order passed u/s 143(3)of the Income Tax Act, 1961 (hereinafter as "the

The order continues below.

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