Mandar Kulkarni Vs ITO (ITAT Ahmedabad)
Section 54 deduction to HUF for property Purchase in the name of Individual: Change of opinion not allowed
The Income Tax Appellate Tribunal (ITAT) Ahmedabad addressed an appeal by the assessee against the CIT(A) order for the Assessment Year 2011-12. The primary contention was the disallowance of a deduction claimed under Section 54 of the Income Tax Act, pertaining to the purchase of a property in the individual capacity of Mandar Kulkarni, a member of the Hindu Undivided Family (HUF).
Case Background: The original return of income for A.Y. 2011-12 was filed by the assessee on 18.07.2011, with total income declared at Rs.2,657/-. The assessment under Section 143(3) was completed on 25.02.2014, disallowing a portion of the exemption claimed under Section 54. The Assessing Officer observed that the property was purchased in the name of Mandar Kulkarni, an individual, not in the name of the HUF, thereby raising doubts about the eligibility for the claimed deduction. The CIT(A) dismissed the assessee’s appeal, leading to further challenge before the ITAT.
Arguments: The assessee contended that the reassessment was merely a change of opinion, as the issue had already been deliberated in the original assessment and appellate proceedings. The Department argued that the property was ancestral HUF property, and therefore, the deduction could only be claimed in the name of the HUF. The ITAT noted that the issue had been previously examined at length and decided upon, rendering the reassessment invalid.
