VIJAY ISRANI,NEW DELHI vs. ACIT, CIRCLE-24(1), NEW DELHI

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ITA 4591/DEL/2019Status: DisposedITAT Delhi24 February 2025AY 2011-125 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the property was purchased as a long-term investment and not as stock-in-trade. Therefore, the assessee was eligible for exemption under Section 54 of the Act.

What were the facts?

The assessee purchased a property in Gurgaon in 1997 and sold it in 2010, claiming the gain as long-term capital gain and seeking exemption under Section 54 for purchasing another property. The Assessing Officer made an addition of Rs. 66 lakhs, which was confirmed by the CIT(A).

What were the issues?

Whether the gain on sale of property qualifies for exemption under Section 54 as a long-term capital gain, considering it was held for over 14 years and purchased as an investment.

Which sections of the Income-tax Act were involved?

Section 54

AI-generated summary — verify with the full judgment below

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH 'F': NEW DELHI

BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER

ITA No.4591/Del/2019 Assessment Year: 2011-12

Shri Vijay Israni, S-12, Green Park Main, New Delhi – 110 016. PAN: AABPI1192E. (Appellant) Vs. Assistant Commissioner of Income Tax, Circle-24(1), New Delhi.

(Respondent)

Appellant by : Shri T. Sivakumar and

Ms. Sanjana, Advocates.

Respondent by : Ms. Harpreeet Kaur Hansra,

Senior DR.

Date of hearing : 24.02.2025 Date of pronouncement : 24.02.2025

ORDER

PER MAHAVIR SINGH, VP

This appeal by the assessee is arising out of the learned CIT(A)-31, New Delhi in appeal No.02/17-18/195/14-15, order dated 13.03.2019. Assessment was framed by the ACIT, Circle-24(1), New Delhi for assessment year 2011-12 under Section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') vide his order dated 28.03.2014.

2.

The first issue in this appeal of the assessee is as regards the order of the learned CIT(A) confirming the addition made by the Assessing Officer at ₹66 lakhs being difference in consideration paid for purchase of property. For this, assessee has raised the following ground No.1:-

Property | Amount | Date | Ch.No./RTGS | Amount | Bank | A/C No. No. | Name V-36 | 81,00,000.00 | 14.6.10 | 337390 | 50,00,000.00 | HDFC | 05032020001144 23.7.10 | 997406 | 16,00,000.00 | Axis | 015010200001670 14.6.10 | 337379 | 15,00,000.00 | HDFC | 05032020001144 81,00,000.00

Gurgaon in the year 1997 and sold the same almost after 14 years i.e., on 04.08.2010 and this property is kept as investment and not as stock in trade. As the facts reveal, we are of the view that this property is purchased as investment and kept by the assessee for long term basis. Hence, the assessee has rightly claimed the investment as long term capital gain and claimed the same as exempt for purchase another property i.e. D-9, Soami Nagar, New Delhi vide sale deed dated 04.08.2010. The facts explained by the assessee are very clear and we are of the view that assessee is eligible for claim of exemption under Section 54 of the Act. Accordingly, we allow this ground of appeal.

9.

In the result, the appeal of the assessee is allowed.

Decision pronounced in the open Court on conclusion of hearing on $24^{\text{th}}$ February, 2025.

Sd/-

Sd/-

(S. RIFAUR RAHMAN) ACCOUNTANT MEMBER

(MAHAVIR SINGH) VICE PRESIDENT

VK.

Copy forwarded to: -

- 1. Appellant - 2. Respondent - 3. CIT - 4. CIT(A) - 5. DR, ITAT

Assistant Registrar

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