SUSHILA BHARDWAJ,JAIPUR vs. ITO 1(4), JAIPUR, JAIPUR

ITA 604/JPR/2023Status: DisposedITAT Jaipur01 March 2024AY 2016-17Bench: DR. S. SEETHALAKSHMI (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the AO's method of estimating the cost of construction using reverse indexation was not in accordance with the law. Considering the absence of original construction records and the demolition of the property, the Tribunal accepted a valuation report as a guiding factor.

What were the facts?

The assessee sold a residential property and claimed long-term capital gains (LTCG) with a deduction under Section 54. The Assessing Officer (AO) doubted the claimed cost of construction and restricted the Section 54 deduction, leading to an addition to the returned income. The CIT(A) confirmed the disallowance on the cost of construction but allowed the Section 54 deduction.

What were the issues?

The primary issue was the estimation of the indexed cost of construction for calculating LTCG. Another issue was the eligibility for deduction under Section 54 for a property divided into multiple units.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 54,Section 48

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES,”B” JAIPUR

Before: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, vk;dj vihy la-@ITA No. 604/JP/2023

Hearing: 07/02/2024Pronounced: 01/03/2024

PER: RATHOD KAMLESH JAYANTBHAI, AM

This appeal filed by assessee is arising out of the order of the National Faceless Appeal Centre, Delhi dated 21/09/2023 [here in after (NFAC)/ ld. CIT(A)] for assessment year 2016-17 which in turn arise from the order dated 22.11.2018 passed under section 143(3) of the Income Tax Act, by ITO, Ward-1(4), Jaipur.

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In this appeal, the ass

The order continues below.

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