Dishant Sureshbhai Patel Vs ITO (ITAT Surat)
Co-owner’s Relief Applied: ITAT Deletes DVO-Based LTCG Addition and Allows Section 54F Exemption
Surat Bench of the Income Tax Appellate Tribunal allowed the assessee’s appeal for AY 2015-16 by following the decision rendered in the case of a co-owner of the very same property.
The Assessing Officer had enhanced long-term capital gains by adopting the DVO’s valuation as on 01.04.1981 and consequently made an addition of ₹16.05 lakh, besides denying exemption under section 54F. The CIT(A) confirmed the additions.
The Tribunal noted that the assessee was a co-owner having 6.25% share in the property and that the identical issue, arising from the same sale transaction, had already been decided in favour of another co-owner. In that case, the Tribunal had accepted the assessee’s computation based on a registered valuer’s report, recognised the actual sale consideration reflected in TDS records, and held that after allowing exemption u/s 54F, no taxable capital gain survived.
As the facts and legal position were identical and no distinguishing feature was pointed out by the Revenue, the Tribunal followed the coordinate bench decision and deleted the addition. The assessee’s appeal was accordingly allowed in full.
FULL TEXT OF THE ORDER OF ITAT SURAT
This appeal has been filed by the assessee against the order dated 31.03.2025 passed by the Ld. Addl/JCIT(A), Kolkata (hereinafter referred to as the “Ld. CIT(A)”), under Section 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year 2015-16.
