Case Law Details
Mumtaz Naseem Syed Vs ITO (ITAT Delhi)
ITAT Delhi held that when the investment in house property is done jointly, claim under section 54 of the Income Tax Act is restricted to the 50%.
Facts- The case of the assessee was selected for limited scrutiny for the reason ‘Large long term capital loss on property, sale consideration of property in ITR is less than sale consideration reported in Form No. 26QB and large deduction claimed u/s 54B, 54C, 54D, 54G, 54GA’.
Accordingly, notice u/s 143(2) and 142(1) of the Act were issued and served on the assessee. The representative of the assessee has participated in the assessment proceedings and assessment order came to be passed wherein deduction claimed by the assessee u/s 54 of the Act of Rs. 3,58,47,768/- has been restricted to Rs. 1,79,23,884/- and an addition of Rs. 74,49,302/- is added back to the income of the assessee by computing the income of the assessee at Rs. 78,18,640/- as against income declared by the assessee at Rs. 3,69,340/- and passed assessment order on 23/12/2016.
Aggrieved by the assessment order dated 23/12/2016, the assessee has preferred an appeal before the CIT(A). The Ld.CIT(A) vide order dated 29/01/2019 upheld the addition made by the Ld. A.O. and confirmed the assessment order.
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Can someone please explain as to how the figure of 74,49,302 was arrived at as additional income added?