PIYUSH KUMAR BAGLA,HATHRAS vs. JURISDICTION ASSESSING OFFICER, WD.-4(3)(4), HATHRAS

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ITA 43/AGR/2021Status: DisposedITAT Agra28 March 2025AY 2018-19Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Assessing Officer erred in not allowing intra-head adjustment for capital gains and losses, which is permissible under the law. The deduction under section 54F was also incorrectly restricted by the CPC.

What were the facts?

The assessee sold 4 properties, reflecting Long Term Capital Gains of Rs. 12.15 Lacs. The CPC computed higher gains of Rs. 16.85 Lacs. The assessee incurred capital losses on two properties, a gain on a third with a section 54F deduction, and a gain on a fourth property against which the losses were adjusted.

What were the issues?

Whether the CPC erred in computing capital gains by not allowing intra-head adjustment of losses and by incorrectly restricting the deduction under section 54F?

Which sections of the Income-tax Act were involved?

Section 143(1),Section 54F

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AGRA

Before: HON’BLE SHRI SATBEER SINGH GODARA, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 12-04-2021 in the matter of an intimation issued by CPC u/s 143(1) on 21-05-2019. Having heard rival submissions, the appeal is disposed-off as under.

2.

From impugned order, it could be seen that the assessee sold 4 properties during the year and reflected Long Term Capital Gains of Rs.12.15 Lacs. However, CPC computed Capital Gains of Rs.16.85 Lacs thereby increasing the gains by Rs.4.69 Lacs. The Ld. CIT(A) confirmed the computation of CPC against which the assessee is in further appeal before us.

3.

It could be ascertained that the assessee has incurred Long Term Capital Loss of Rs.3.95 Lacs and Rs.0.74 Lacs on sale of two properties. However, it incurred Long Term Capital Gain of Rs.7.90 Lacs on third property against which the assessee claimed deduction u/s 54F for Rs.7.90 Lacs and thus, reducing the gain on third property to Nil. The assessee earned gain on fourth property for Rs.16.02 Lacs and adjusted loss of Rs.3.95 Lacs and Rs.0.74 Lacs against the same, which as per extant provision of intra-head adjustments are allowable to the assessee. However, CPC has clubbed the gains and restricted the addition u/s 54F to the extent of Rs.3.20 Lacs which has resulted into impugned adjustment in the hands of the assessee. We find that CPC has erred in not allowing intra-head adjustment which is clearly allowable to the assessee. Therefore, Ld. AO is directed to accept the gains as reflected by the assessee.

4.

The appeal stand allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) "ाियक सद" /JUDICIAL MEMBER लेखा सद" /ACCOUNTANT MEMBER Dated: 28-03-2025 आदेश की "ितिलिप अ"ेिषत / Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. ""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF

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