Poonam Raghav Vs ITO (ITAT Delhi)
The ITAT Delhi dismissed the assessee’s appeal against the order dated 20.08.2025 passed by the CIT(A)/NFAC for Assessment Year 2016-17. The dispute concerned an addition of Rs.8,50,000 as Long Term Capital Gain and the assessee’s claim of deduction under Section 54 of the Income Tax Act, 1961.
The assessee had not claimed the relevant capital gain deduction in the original return of income but claimed deduction under Section 54 for the first time in the return filed in response to notice under Section 148. During appellate proceedings, the assessee submitted that the receipt of Rs.8,50,000 from Sh. Rahul Arora related to the sale of a house property in Faridabad and had been utilised for purchasing new properties with the Omaxe Group. The assessee therefore requested that the sale consideration be enhanced to Rs.31,00,000 and deduction under Section 54 be allowed.
The CIT(A) rejected the submission, observing that the capital gains had not been correctly calculated in the original return and that the same could not be granted in the return filed under Section 148. The addition made by the Assessing Officer was accordingly confirmed.
Before the ITAT, the assessee relied on the decisions in Income Tax Officer, International Taxation, Ward 3(1)(1), Mumbai V Armine Hamied Khan (ITA No.834/Mum/2022) and Shri B.M. Labroo V DCIT, Circle 24(1) (ITA No.2756/Del/2011), stating that the addition had been deleted in those cases. No one appeared on behalf of the assessee, while the Departmental Representative relied on the findings of the lower authorities.
