Siddharth Bhaskar Shah Vs PCIT (ITAT Mumbai)
Summary: The appeal was filed by the assessee against the order dated 24.04.2025 passed under Section 263 of the Income Tax Act, 1961 by the Principal Commissioner of Income Tax (PCIT) for Assessment Year 2022–23. The dispute concerned the validity of revisionary proceedings initiated by the PCIT and denial of deduction under Section 54F.
The assessee had earned long-term capital gains from the sale of unquoted shares amounting to Rs. 81.39 crore and claimed deduction of Rs. 39.96 crore under Section 54F for investment in a residential flat in Bandra, Mumbai. The PCIT initiated revision proceedings on the ground that the assessee had earlier purchased six flats in Bangalore (Apas Valmark) on 23.12.2020 and therefore owned more than one residential house on the date of transfer, allegedly violating the condition under Section 54F that the assessee should not own more than one residential house other than the new asset.
The assessee contended that the six flats in Bangalore constituted a single residential unit (triplex) with interconnected structure, common access, and internal stairways, and therefore qualified as “one residential house.” It was further submitted that this issue had already been adjudicated in the assessee’s own case for Assessment Year 2021–22 by a Coordinate Bench of the ITAT, which held that the six flats formed one residential unit and allowed the deduction under Section 54F.
