Claim Rejected by CPC u/s 54

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A taxpayer's claim for capital gains tax exemption under Section 54 was rejected by the CPC, Bangalore, despite purchasing a residential property jointly using the proceeds from selling land. The taxpayer is seeking advice on how to proceed after receiving a demand notice. Suggestions include requesting the ITR be reprocessed or filing an appeal if the claim is genuine and the reason for rejection is unclear.

Tapash Kumar Biswas

Tapash Kumar Biswas (Querist)

24 March 2025 Me and my wife have purchased land on 17.09.12 by Rs. 23.32 lacs and 23.17 lacs seperately and sold it by Rs. 55.88 lacs & 54.57 lacs on 23.12.2021. By the amount of Capital Gain we have Purchased a Residential property Jointly in the name of my wife and myself amounting Rs. 68.24 lacs and claim exemption u/s 54. But in the assessment CPC Bangalore rejected the claim u/s 54 without any reason and issued demand notice to both of us. Would u pls suggest , what should I do now ??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 March 2025 Unless exact reason known for the rejection of claim, proper answer cannot be obtained. You may request for reprocessing the ITR. Or if your claim is genuine. you can file appeal.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

30 September 2025 Good luck....

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