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Namitha Deenadayalu Naidu vs. ITO

Case No: ITA No.1572/Bang/2024
Court: INCOME TAX APPELLATE TRIBUNAL, 'C' BENCH: BANGALORE
Date: 1/9/2025

Parties Involved

appellantNamitha Deenadayalu Naidu
respondentITO

Facts Summary

The assessee, Namitha Deenadayalu Naidu, an individual and homemaker, filed her return of income for the assessment year 2016-17 declaring a total income of Rs.14,35,170/-. The return was processed under section 143(1) of the Income Tax Act. The case was selected for limited scrutiny under CASS to verify whether the deduction from capital gains was claimed correctly. Notices under sections 143(2) and 142(1) were issued. The assessee derived income from salaries, house property, profit & gains of

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the exemption claimed under section 54 of the Income Tax Act for the capital gain is eligible?
  • 2. Whether the construction expenditure on the second residential unit is allowable under section 54 of the Act?

Precedents Relied Upon

2 precedents cited in this judgement.

Judgment Outcome

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Version 2.0.1Last updated: October 2025
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