ITA No.1399/Mum/2017. Case: Nitin Radheshyam Agarwal Vs ACIT -21(2). ITAT (Income Tax Appellate Tribunal)

Case NumberITA No.1399/Mum/2017
CounselFor Appellant: Dr. K. Shivaram Sr. Advocate with Sh. Rahul Hakkani, Advs. and For Respondents: Shri Suman Kumar (DR)
JudgesShri G.S. Pannu, Accountant Member and Shri Pawan Singh, Judicial Member
IssueIncome Tax Act - Section 254(1)
Judgement DateApril 28, 2017
CourtITAT (Income Tax Appellate Tribunal)


Shri Pawan Singh, Judicial Member, (ITAT Mumbai Bench B)

  1. This appeal by assessee u/s 253 of the Income-tax Act (''the Act'') is directed against the order of ld. CIT(A)-33, Mumbai dated 09.01.2017 for Assessment Year (AY)-2013-14. The assessee has raised the following grounds of appeal: 1. Disallowance of deduction claimed u/s. 54 of the Act (Ground No. 1 to 3).

  2. Charging of interest u/s 234B of the Act (Ground No. 1 & 2). 2. Brief facts of the case are that the assessee filed return of income for relevant AY on 27.01.2014 declaring total income of Rs. 4,08,020/- after set off of current year losses. The assessment was completed on 19.02.2016 u/s 143(3) of the Act. In the return of income the assessee claimed the benefit of LTCG u/s 54 of the Act and claimed the deduction of section 54 amounting to Rs. 1,98,14,275/-. The AO disallowed the same. On appeal before the ld. CIT(A), the disallowance was sustained. Thus, further aggrieved by the order of ld. CIT(A), the assessee has filed the present appeal before us.

  3. We have heard the ld. Authorized Representative (AR) of assessee and ld. Departmental Representative (DR) for Revenue and perused the material available on record. Ld. AR of the assessee argued that in the return of income, assessee claimed deduction u/s 54 of the Act of Rs. 1,98,14,275/-. During the assessment, the AO asked the assessee to furnish the details and the copy of sale-deed in support of various claims made in the computation of income. The assessee furnished the details required by AO. The ld. AR for assessee further argued that the assessee along with his wife entered into agreement to sale on 23.05.2008 with Bombay Dyeing Manufacturing Co. Ltd. for purchase of residential flat for a consideration of Rs. 4,20,56,656/-. As per sale agreement, the assessee is having 2/3 share in the said property. The assessee paid the consideration in installment as per the terms of agreement. The possession of the flat was handed over to the assessee on 28.01.2012. During the assessment year, the assessee sold a residential house by way of agreement to sale dated 07.05.2012 for a consideration of Rs. 3.61 Lakhs. The assessee computed Capital Gain on sale of old flat amounting to Rs. 1,98,14,275/-. The assessee claimed exemption u/s 54 of the Act for his share of consideration paid for purchase of new flat against the capital gain, so earned. It was further argued that the exemption u/s 54 of the Act was claimed as new...

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