Ashok Kumar Vs ITO (ITAT Delhi)
ITAT Upholds Denial of Capital Gains Exemption for Property in Mother’s Name; Unexplained Cash Deposits Addition Sustained
In a recent ruling, the Income Tax Appellate Tribunal (ITAT), Delhi Bench, has dismissed an appeal filed by Ashok Kumar for the assessment year 2015-16. The tribunal upheld the Commissioner of Income Tax (Appeals)’s (CIT(A)) decision to deny the assessee the benefit of deduction under Section 54F of the Income Tax Act, 1961, and sustained an addition for unexplained cash deposits. The core of the ruling on Section 54F emphasizes that for this exemption, the new asset must be acquired in the name of the assessee.
The appeal, which had been listed for hearing on fifteen dates since its filing in 2019, proceeded with the assistance of the departmental representative due to the assessee’s apparent lack of keenness in pursuing the matter.
Background of the Case: Capital Gains and Section 54F Claim
The assessee’s case was initially selected for limited scrutiny due to a substantial deduction claimed under Section 54F and a discrepancy in the sale consideration of a property reported in the Income Tax Return (ITR) versus Form 26QB. This was later converted to complete scrutiny.
