ACIT Vs Vibha Taneja (ITAT Delhi)
Background: The case involves an appeal by the revenue against the CIT(A)-15, Delhi’s order for the assessment year 2014-15. The primary issue is the addition of Rs. 12.50 crores made by the AO under Section 69A of the Income Tax Act, 1961, concerning unexplained money.
Facts:
1. The assessee declared long-term capital gains from selling a 1/3rd share in a property at Rani Jhansi Chowk, Delhi, and claimed exemption under Section 54.
2. The property was initially purchased by the assessee’s husband from M/s. Glorious Housing & Land Development Pvt. Ltd.
3. Subsequently, the husband gifted 1/3rd share of the property to the assessee, valued at Rs. 53.35 lakhs. The share was later sold, resulting in long-term capital gains.
4. The AO contested the gift’s validity due to the absence of a registered gift deed. Additionally, the timing of the gift in 2006 was questioned as the property deed was executed in 2011.
5. The AO disallowed the claimed long-term capital gains, treating Rs. 12.50 crores credited to the bank account as income under Section 69A.
CIT(A)’s Decision:
- The CIT(A) highlighted the significance of registration under the Transfer of Property Act and noted that Section 2(47)(vi) covers defacto transfers of immovable property.
- Emphasizing that the assessee was in full possession based on the gift deed, the CIT(A) allowed the claimed exemption under Section 54 for reinvesting the proceeds in another residential property.
- The CIT(A) deleted the addition made by the AO under Section 69A.
ITAT’s Decision:
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