Smt. Sushma Kapur Vs Assessment Unit (ITAT Delhi)
The assessee appealed against the order of the Commissioner of Income Tax (Appeals)-NFAC dated 29.09.2025, arising from the assessment order dated 23.09.2022 passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 for Assessment Year 2020-21.
The assessee had filed a return declaring total income of Rs. 9,92,990/-. The case was selected for scrutiny under CASS due to large investments in immovable property reported through Form 26QB and substantial exemption claims under Sections 54 and 54F.
During assessment, the Assessing Officer noted that the assessee had sold an inherited shop at Munirka, New Delhi, for Rs. 44,00,000 and claimed exemption under Section 54F by investing in a residential property purchased on 27.11.2019 for Rs. 3.30 crore. The Assessing Officer accepted this exemption.
The dispute related to capital gains arising from the sale of a residential property at Safdarjung Enclave, jointly owned with Smt. Nutan Kapoor. The assessee declared an indexed cost of acquisition of Rs. 1,73,40,000 and claimed exemption under Section 54 of Rs. 2,97,56,000. The Assessing Officer relied on the original acquisition cost reflected in the 1963 DDA allotment letter, accepted the construction cost from the valuation report, independently computed the fair market value (FMV) as on 01.04.2001, determined the indexed cost of acquisition at Rs. 67,44,197, and made an addition of Rs. 84,99,803. The CIT(A) upheld the addition.
