Chandi Ram Sehajwani Vs ITO (ITAT Delhi)
Section 54F Claim Remanded: ITAT Restores Matter to AO for Fresh Verification of Ownership and Investment
The Delhi ITAT allowed the assessee’s appeal for statistical purposes and remanded the issue of exemption under Section 54F to the Assessing Officer for fresh verification. The assessee had claimed exemption on long-term capital gains arising from sale of a factory by investing ₹53.24 lakh in a residential flat at Noida. The claim was disallowed by the AO and confirmed by the CIT(A) mainly on the ground that the registered sale deed was not produced and ownership of the flat was not conclusively established, and also because no reply was received from the developer to notice under Section 133(6).
The Tribunal noted that payments were made by the assessee through banking channels both to the seller and directly to the developer, and the flat had been transferred in the assessee’s name with prior permission of the builder. However, considering that adequate opportunity had not been granted and relevant documents such as the registered sale deed were not properly examined, the Tribunal held that the assessee should be given a fair chance to establish ownership and investment. Accordingly, the entire issue was restored to the file of the Assessing Officer with directions to re-examine the Section 54F claim afresh after granting reasonable opportunity. The appeal was thus allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the assessee is directed against the order of the NFAC, Delhi dated 19.12.2024 pertaining to A.Y 2012-13.
