PCIT Vs Jangpal Singh Tanwar (Punjab and Haryana High Court)
Summary: The Punjab and Haryana High Court dismissed the Revenue’s appeal under Section 260A of the Income Tax Act, 1961, holding that no substantial question of law arose against the Income Tax Appellate Tribunal’s decision allowing the assessee’s claim of exemption under Section 54F of the Income Tax Act, 1961.
The case concerned Assessment Year 2016-17. The assessee, a retired pensioner, had filed his return on 05.08.2016 declaring income of Rs.4,21,230/-, which was accepted by the Assessing Officer on 07.12.2018. The income was declared under the heads “Salaries” and “Income from Other Sources.” Subsequently, in proceedings under Section 263, the Principal Commissioner of Income Tax, Chandigarh, set aside the assessment order on the ground that the Assessing Officer had failed to examine the assessee’s eligibility under Section 54F and directed a fresh assessment.
The Tribunal recorded that the assessee had sold residential plot No.227, Mansa Devi Complex at Urban Estate, Panchkula, for Rs.1,28,50,000/- on 14.12.2015. The plot had been allotted by HUDA on 10.12.2010 for Rs.10,83,815/-. The computation of income showed capital gain of Rs.97,78,721/- on the plot. On 18.12.2015, the assessee purchased House No.365, Sector 20A, Chandigarh, jointly in his own name and in the names of his wife, Smt. Sumitra, and son, Sh. Sukhbir Singh, for a sale consideration recorded in the judgment as Rs.1,82,00,000/-.
