Shahana Raza , New Delh V. DCIT, Circle-3(1)(1), International Taxation, New Delhi

ITA 2111/DEL/2022

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6320 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 03-04-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 31-08-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revised return; Capital Gains
• Section: 143(3); 54F; 48; 22

Judgement Text

0IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member, Sh. Anubhav Sharma, Judicial Member ITA No. 2111/Del/2022 : Asstt. Year: 2018-19 Shahana Raza, 427-428, DLF Towers, 15 Shivaji Marg, Najafgarh Road, New Delhi-110015 Vs DCIT, Circle-3(1)(1), International Taxation, New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. ANFPR3061G Assessee by : Sh. Baldevraj, CA Sh. Manish Upneja, CA Revenue by : Sh. Vizay B. Vasanta, CIT-DR Date of Hearing: 04.04.2024 Date of Pronouncement: 26.06.2024 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order dated 18.07.2022 passed by the AO u/s 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961. 2. Following grounds have been raised by the assessee: ”1. Th at on t h e f ac ts of th e ca se a n d i n l a w, t h e o rd er d at ed 18/ 07 / 20 22 p as s ed b y t h e In com e ta x d ep a rtm ent , Ci rcl e Int Ta x 3( 1)( 1) , D el h i [ h erein aft er f or th e sak e of b revit y r ef erred to a s "th e Ld . A . O. "] un d er s ect i on 14 3(3) of t h e In c om e-t ax Act , 1961 ( h erei n af ter fo r th e sa k e of b revit y ref erred t o a s "th e A ct "] in p ur su an ce of th e di recti on s of t h e Di spu t e Resol u t i on Pan el u n der s ect i on 1 44C ( 5) dat ed 1 5/ 0 6/ 2022 ( herei n af t er f or th e sa k e of b revi t y r eferred t o a s "DRP" ) is void ab in i ti o and li abl e t o b e q u a sh ed. 2. Th at on th e fa ct s of th e ca se an d in l a w , th e Ld . AO h a s gr oss l y erred in d is al l ow i ng a m ou nt to t h e tu n e of Rs . 15, 96 ,45 0/- c lai m ed a s d edu ct i on in c omp ut i ng cap it al g ain u nd er sec t i on 48 read wi th s ec t i on 54 of t h e A ct . ITA No. 2111/Del/2022 Shahana Raza 2 3. Th at on th e fa ct s of th e ca se an d in l a w , th e Ld . AO h a s gr oss l y erred i n ho ld in g t ha t t h e f oll owin g s a mou n t in cu r red / pai d i n res pe ct of p u rch a s e of n ew resi d en t ial h ou se is n ot elig i bl e and i n cl ud abl e i n "c os t of p u rch a s e of new resid ent ial hou s e pu rch a s ed" f or th e p u rp o se cl ai min g ded uct i on / ex em pt i o n u / s 54 of th e A ct. a) S tam p d ut y : Rs . 15, 55,17 5/ - b) A d v ocat e f ee: Rs . 20 ,00 0/- c) Tra ns f er ch a rg es: R s. 5 ,000/- d) El ect ri ci t y t ran s f er f ees: R s. 1 4, 110/ - e) Oth ers: Rs. 2 ,16 5/- 4. Th at on th e fa ct s of th e ca se an d in l a w , th e Ld . AO h a s gr oss l y erred i n A d en yin g t h e d ed u ct i on / ex em pt i on of R s . 15, 96 ,45 0/- u/ s 5 4 of t h e A ct . 5. Th at on t h e fa ct s o f t h e ca se an d i n la w, t h e Ld . DR P ha s tra v el l ed b ey on d A it s p ow er in h old i ng t h at t h e A pp ell a nt i s n ot ent it l ed t o fil e a revi sed /al t ern at e c l ai m u / s 5 4 of th e In co m e T a x A ct , 19 61 a s t h e s am e c an on l y b e f il ed th rou g h a rev is ed r et u rn o f in c om e. ” 3. The assessee sold a house and invested the capital gains to purchase another house to claim exemption u/s 54F of the Income Tax Act, 1961. The cost of a new house was Rs.194,31,000/- and the assessee has also paid Rs.15,55,730/- as stamp duty, Rs.5,000/- as transfer fee, Rs.14,110/- as electricity transfer fee and Rs.20,000/- as advocate fee. The Assessing Officer as well as the ld. DRP disallowed the expenses as the assessee has failed to file revised return claiming these expenses. 4. After going through the record, we hold that the stamp duty, transfer fee and advocate fee are intricately linked to the purchase of the new house and are allowable expenses incurred in acquisition of the new property. Hence, we direct the ITA No. 2111/Del/2022 Shahana Raza 3 Assessing Officer to allow these expenses and re-compute the correct capital gains for taxation/exemption purpose. 5. In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 26/06/2024. Sd/- Sd/- (Anubhav Sharma) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 26/06/2024 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR