ITO Vs Rajni Gupta (ITAT Delhi)
ITAT Delhi held that registered deed of new property not mandatory for claiming exemption under section 54F of the Income Tax Act. Investment in property and possession thereof sufficient for claiming exemption.
Facts- Revenue has preferred the present appeal relating to two different aspects of computation of income under the head capital gains, one pertaining to substitution of the actual consideration received with the stamp duty value of the property sold, in terms of section 50C of the Act and the other relating to denial of claim of deduction/ exemption of the capital gain earned by making investment made in another property as per section 54F of the Act. That while the AO had invoked section 50C of the Act and also denied exemption claimed by the assessee u/s 54F of the Act. Notably, CIT(A) had allowed assesses appeal on both the counts, deleting entire addition made by the AO.
Conclusion- Held that the addition in any case is not sustainable since the AO had not acceded to the assessee’s valid request for referring the valuation of the property sold to the DVO in terms of the provision of Section 50C(2) of the Act. Considering that we have found the Ld. CIT(A) to have deleted the addition of Rs. 2,67,81,500/- incorrectly and noting the fact pointed out by the Ld.Counsel for the assessee of the AO not having referred the valuation of the property to DVO in terms of section 50C(2) of the Act, we restore the issue back to the AO to adjudicate the same afresh after obtaining report of valuation of the property from the DVO.
