Pushpinder Oberai Vs DCIT (ITAT Chandigarh)
The Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, in the case of Pushpinder Oberai vs. DCIT, has deleted an addition of lakhs made to the assessee’s income under Section 69 (unexplained investments) and consequentially allowed the deduction claimed under Section 54 of the Income Tax Act, 1961. The Tribunal accepted the fresh documentary evidence which substantiated that the source of the assessee’s investment in a new property was legitimate, arising from the sale of an asset in Noida.
ITAT Deletes Lakh Addition, Upholds S. 54 Deduction
The appeal, concerning the Assessment Year (AY) 2010-11, was filed by the assessee, Pushpinder Oberai, a retired Colonel from the Indian Army. The assessment was reopened after the Assessing Officer (AO) noted that the assessee had purchased three flats in Mumbai for lakhs but had not adequately accounted for the source of funds in his original tax return.
Background of the Dispute
The assessee claimed that the investment in the Mumbai flats was sourced substantially from a bank loan ( lakhs) and the remaining lakhs from the sale of a property in Noida. The assessee reported a long-term capital gain of lakhs from the Noida sale after indexation, which was fully claimed as exempt under Section 54 (exemption on capital gains for reinvestment in a new residential house).
