Sukhdev Singh Katyal, Delhi V. ITO, New Delhi

ITA 6310/DEL/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6693 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 23-02-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 08-12-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: F R MEENA
• Assessee Lawyers: C L SHARMA
• Section: 54F; 54

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-I : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.6310/DEL/2016 ASSESSMENT YEAR : 2011-12 SUKHDEV SINGH KATYAL, WZ-195A/1, FIRST FLOOR, GALI NO.4, VIRENDER NAGAR, DELHI. PAN: AROPS4305F VS. ITO, WARD-69(2), CIVIC CENTRE, JLN MARG, NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C.L. SHARMA, ADVOCATE DEPARTMENT BY : SHRI F.R. MEENA, SR. DR DATE OF HEARING : 23.02.2017 DATE OF PRONOUNCEMENT : 23.02.2017 ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) ON 19.10.2016 IN RELATION TO T HE ASSESSMENT YEAR 2011-12. 2. THE ONLY ISSUE PRESSED BY THE LD. AR IS AGAINST THE CONFIRMATION OF ADDITION OF RS.17,35,884/-. ITA NO.6310/DEL/2016 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE, A RETIRED GOVERNMENT TEACHER EARNING PENSION, SOLD HI S PROPERTY AT F.NO.40, BLOCK D, GUJRANWALA CGHS VIKAS PURI, NE W DELHI ON 26.2.2011 FOR A CONSIDERATION OF RS.27 LAC AND P URCHASED A NEW PROPERTY AT WZ-195-A-1/FIRST FLOOR, GALI NO.4, VIRENDAR NAGAR, NEW DELHI-58 FOR A CONSIDERATION OF RS.19,20 ,000/- ON 5.3.2011 IN THE NAME OF HIS WIFE SMT. MANJEET KAUR. SINCE THE ENTIRE AMOUNT OF CAPITAL GAIN WAS INVESTED IN THE N EW PROPERTY, THE ASSESSEE CLAIMED THE BENEFIT OF DEDUCTION U/S 5 4. THAT IS HOW, CAPITAL GAIN WAS RETURNED AT NIL. THE AO DID NOT ALLOW THE BENEFIT OF SECTION 54 ON THE PREMISE THAT THE N EW PROPERTY WAS PURCHASED IN THE NAME OF HIS WIFE SMT. MANJEET KAUR. THIS RESULTED INTO COMPUTATION OF NET CAPITAL GAIN AT RS.17,35,884/-. THE LD. CIT(A) CONFIRMED THE ACTIO N OF THE AO. THE ASSESSEE IS AGGRIEVED BY THE SUSTENANCE OF ADDITION. ITA NO.6310/DEL/2016 3 4. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND PERU SED THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT TH ERE IS A CLEAVAGE OF OPINION AMONGST THE HONBLE HIGH COURTS ON THE QUESTION OF GRANT OF BENEFIT U/S 54 ETC., WHEN NEW PROPERTY IS PURCHASED BY THE TRANSFEROR IN HIS OWN NAME WITH AN OTHER OR EXCLUSIVELY IN THE NAME OF ANOTHER. WHEREAS THE HO NBLE PUNJAB & HARYANA HIGH COURT IN CIT VS. DINESH VERMA (2015) 233 TAXMANN 409 (P&H) HAS HELD THAT THE BENEFIT OF DEDUCTION CANNOT BE ALLOWED WHEN A NEW PROPERTY IS PURCHASED IN THE NAME OF WIFE, THE HONBLE JURISDICTIONAL HIGH COURT IN CIT VS. KAMAL WAHAL (2013)351 ITR 4 (DEL), HAS HELD THAT DEDUCTION U/S 54F CANNOT BE DENIED IF THE PROPERTY IS NOT PUR CHASED IN OWN NAME. SINCE THE ASSESSEE FALLS WITHIN THE JURI SDICTION OF THE HONBLE DELHI HIGH COURT, RESPECTFULLY FOLLOWIN G THE PRECEDENT IN KAMAL WAHAL (SUPRA) , I HOLD THAT THE ASSESSEE WAS RIGHT IN CLAIMING THE BENEFIT OF SECTION 54 IN PURC HASING NEW PROPERTY IN THE NAME OF HIS WIFE. AS THE AMOUNT OF CAPITAL GAIN IS LESS THAN THE AMOUNT INVESTED IN THE NEW PR OPERTY, NO ITA NO.6310/DEL/2016 4 AMOUNT IS CHARGEABLE TO TAX UNDER THE HEAD CAPITAL GAINS. THIS GROUND IS, THEREFORE, ALLOWED. 5. THE OTHER GROUND ABOUT INITIATION OF RE-ASSESSME NT WAS NOT PRESSED BY THE LD. AR. THE SAME IS, THEREFORE, DISMISSED. 6. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 23.02.201 7. SD/- [R.S. SYAL] ACCOUNTANT MEMBER DATED, 23 RD FEBRUARY, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.