Shri Alpesh Navinbhai Barot vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Shri Alpesh Navinbhai Barot, filed his return of income for the Assessment Year (A.Y.) 2015-16 on 31.03.2017, declaring income of Rs.25,37,500/-. The case was selected for scrutiny under CASS. The Assessing Officer found that the assessee had sold a non-agricultural land, in which he was a 1/4th co-owner, for a consideration of Rs.8 Crores. The assessee had disclosed capital gain of Rs.25,37,500/- after claiming deduction of Rs.1,74,62,500/- under Section 54F of the Income Tax Act, 1961. The Assessing Officer disallowed the deduction u/s 54F as the assessee was not eligible for the deduction. The assessee filed an appeal before the First Appellate Authority, which was dismissed by the Commissioner of Income Tax (Appeals). The assessee then filed a second appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the assessee was eligible for claiming deduction under section 54F of the Act.
• 2. Whether the Assessing Officer should have allowed deduction for cost of acquisition and cost of improvement while computing the capital gain on sale of property.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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