Sujit Dharamdas Patel Vs ACIT (ITAT Mumbai)
Section 54F Claim Gets Fresh Lease: ITAT Mumbai Remands Case for One More Opportunity to Furnish Evidence
ITAT Mumbai (F Bench) in Sujit Dharamdas Patel vs ACIT (ITA No. 4939/Mum/2025, AY 2016-17, order dated 23.12.2025) has set aside the disallowance of ₹2.90 crore claimed u/s 54F and restored the matter to the Assessing Officer for de-novo adjudication, granting the assessee one final opportunity to substantiate the claim with proper documentary evidence.
The Assessee had sold two parcels of land (₹2.15 crore and ₹75 lakh) and claimed deduction u/s 54F on investment in an under-construction residential property developed by Indiabulls. The AO disallowed the claim on the ground that the Assessee failed to produce basic evidences such as agreement for purchase, allotment letter, ownership proof and possession certificate. CIT(A) affirmed the disallowance on identical reasoning.
Before the Tribunal, the Assessee pleaded that relevant documents were partly filed earlier and sought one more opportunity to place complete evidence on record. Accepting this plea in the interest of justice, ITAT held that the claim should be examined on merits rather than rejected on technical grounds.
Accordingly, ITAT:
- • Set aside the orders of AO and CIT(A) on the s.54F issue
- • Remanded the matter to AO for fresh assessment
- • Directed the Assessee to furnish complete documentary evidence without delay
- • Directed AO to decide the issue afresh in accordance with law after granting due opportunity
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal has been filed by the assessee, challenging the order of the Learned Commissioner of Income Tax (Appeals) [‘Ld. CIT(A)’ for short], National Faceless Appeal Centre (‘NFAC’ for short) passed u/s. 250 of the Income Tax Act, 1961 (‘the Act’), pertaining to the Assessment Year (‘A.Y.’ for short) 2016-17.
