Zafar Iqbal Vs DCIT (ITAT Kolkata)
The ITAT Kolkata partly allowed the assessee’s appeal in a capital gains dispute arising from sale of land and claim of exemption u/s 54F. The AO and CIT(A) had denied exemption on the ground that unutilised capital gains were not deposited in the Capital Gain Account Scheme before the due date u/s 139(1) and also alleged ownership of more than one residential house. The Tribunal held that where the assessee had invested the capital gains in a new residential property within the extended time available u/s 139(4), exemption u/s 54F cannot be denied merely for non-deposit in CGAS, following decisions such as Ramchandra Rao and Venkata Dilip Kumar. It also accepted that the assessee owned only one residential property and directed the AO to allow deduction u/s 54F.
On other issues, expenses incurred for settlement of land disputes and eviction-related payments were restored to the AO for verification as potential cost of transfer/improvement, and addition relating to brought-forward deposits was also remanded for factual verification. Accordingly, the appeal was partly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. ‘CIT(A)’] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2016-17 dated 14.05.2024.
