Case Law Details
Amrik Sokhi Vs ITO (ITAT Delhi)
Introduction: In a recent decision by the Income Tax Appellate Tribunal (ITAT) Delhi, the case of Amrik Sokhi vs. ITO for the assessment year 2015-16 has garnered attention. The primary issue revolves around the claim of capital gain deduction under Section 54 of the Income Tax Act. Specifically, the case pertains to the purchase of two adjacent and joint flats with the intention of using them as one residence unit. In a significant move, the ITAT has decided to restore the matter to the Assessing Officer (AO) for further verification.
Detailed Analysis:
1. Background and Legal Context: This appeal was filed against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment year 2015-16. The appellant claimed deductions under Sections 54 and 54F of the Income Tax Act in relation to two properties. The CIT(A) confirmed the Assessing Officer’s (AO) decision to disallow these deductions.
2. Grounds of Appeal: The appellant’s counsel contended that the CIT(A) erred in confirming the AO’s actions regarding the disallowance of deductions. The counsel argued that the facts recorded were incorrect, and the principles of natural justice were violated. The submissions made by the appellant were allegedly not considered, even though all the necessary conditions for the deductions were met.
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