Shweta Singh Vs ITO (ITAT Mumbai)
Mumbai, [Current Date]: In a significant decision for individual taxpayers, the Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has ruled that mere joint ownership of residential properties does not disqualify an assessee from claiming the capital gains deduction under Section 54F of the Income Tax Act, 1961. The Tribunal, while condoning a delay in filing the appeal, sided with the assessee, Shweta Singh, highlighting a taxpayer-favorable interpretation when confronted with conflicting judicial views from non-jurisdictional High Courts.
The appeal, filed by Shweta Singh for the Assessment Year 2013-14, initially faced a delay of 135 days. However, the ITAT condoned this delay, acknowledging the assessee’s submission that the impugned order and prior hearing notices were not properly received via email or physical delivery, with discovery only occurring through a random check on the e-filing portal. The Tribunal, referencing the Supreme Court’s pronouncement in Collector Land Acquisition, Anantnag Vs. MST Katiji and others (1987 SCR (2) 387), reiterated that “rules of procedure are handmaid of justice” and substantial justice should be preferred over technical considerations.
The Core Disallowance: A Question of ‘Ownership’
The central point of contention stemmed from the assessee’s sale of agricultural land in Bhopal on September 3, 2012, for Rs. 64 lakh, resulting in a long-term capital gain of Rs. 61,65,546. Shweta Singh deposited this capital gain into a capital gain account scheme and subsequently invested in a new residential flat on July 7, 2015, claiming a deduction under Section 54F.
