ITAT Allows section 54 Deduction for property registered in spouse’s name

Simran Bagga Vs ACIT (ITAT Delhi) Introduction: In a significant verdict, the Income Tax Appellate Tribunal (ITAT) Delhi, in the case of Simran Bagga Vs ACIT, has ruled on the eligibility of income tax deduction under section 54. The dispute arose when Simran Bagga, a non-resident individual residing in the UAE, claimed a deduction of INR 93,46,404 under section 54 for a property registered in her spouse’s name. The Assessing Officer (AO) disallowed the claim, leading to an appeal before the ITAT. Detailed Analysis: Simran Bagga filed a revised return for A.Y. 2020-21, declaring a total ...