Mrs. Nirmalaben Popatlal Shah v/s ITO, 19(2)(4), Mumbai

Parties Involved

Facts Summary

The assessee, Mrs. Nirmalaben Popatlal Shah, filed her return of income on 16/09/2021 declaring a total income of Rs. 8,08,550. She derived income from short-term capital gains, long-term capital gains, and income from other sources. The return was selected for scrutiny, and statutory notices were issued. During the assessment proceedings, the Assessing Officer (AO) held that the assessee earned long-term capital gains of Rs. 3,29,26,831 on the sale of a property and invested Rs. 3,15,93,280 in the purchase of a new residential house by the due date of filing the return of income. The AO restricted the deduction allowable under section 54 of the Act to Rs. 3,15,93,280 and made an addition of Rs. 13,33,551 to the total income of the assessee under the head 'long-term capital gains'. The Commissioner of Income Tax (Appeals) upheld the AO's decision. The assessee appealed against this decision.…

Legal Issues

• 1. The learned CIT (A) erred in not considering and adjudicating Ground No.1 of the appellant relating to the arithmetical error of Rs.27,00,000/- in the total amount utilized towards the purchase of a new residential house.
• 2. The learned CIT(A) erred in upholding the action of the learned AO in not considering the amount of Rs.21,00,000/- paid on 17.3.2021 towards stamp duty and registration charges of the property purchased as forming part of the cost of the new residential property.

Judgment Outcome

Decided in favour of Assessee.

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