Deduction u/s 54 of the Income Tax Act is allowable for only one property


Quick Summary
The Income Tax Appellate Tribunal has ruled that deductions under Section 54 of the Income Tax Act are permissible for only one property. This decision consolidates appeals concerning assessment years 2007-08 and 2010-11. The case involved disputes over property valuation and the claim for deductions on residential property investments.

Court :
ITAT Delhi

Brief :
These are three appeals for two Assessment years pertaining to one assessee, Mr. Valmik Thapar, a resident, Individual [Assessee]. Assessee filed ITA number 5767/Del/2015 for assessment year 2007 – 08 and ITA number 6346/Del/2014 for A Y 2010-11. Ld AO filed ITA number 6726/Del/2014 for AY 2010-11. All these appeals are on common issue and therefore, those are heard together and disposed of by this common order. Assessment Year 2010-11

Citation :
ITA No. 5767/Del/2015

INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH “G”: NEW DELHI

BEFORE HON’BLE JUSTICE P.P. BHATT, PRESIDENT
AND
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
(Through Video Conferencing)

ITA No. 5767/Del/2015
 (Assessment Year: 2007-08)

Shri Valmik Thapar,
19, Kautilya Marg,
New Delhi
(Appellant) 

Vs. 

ACIT,
Circle-53(1),
New Delhi
(Respondent)

ITA No. 6346/Del/2014
 (Assessment Year: 2010-11)

Shri Valmik Thapar,
M/s. R. N. Khanna & Company, CA,
14-15F, Shivam House, Connaught
Place, New Delhi
PAN: AACPT7098K
(Appellant) 

Vs. 

DCIT,
Circle-32(1),
New Delhi
(Respondent)

ITA No. 6726/Del/2014
 (Assessment Year: 2010-11)

ACIT,
Circle-53(1),
New Delhi
PAN: AACPT7098K
(Appellant) 

Vs. 

Shri Valmik Thapar,
19, Kautilya Marg,
New Delhi 
(Respondent)

Assessee by : Shri Salil Agarwal,
Senior Advocate along with
Shri Shailesh Gupta,
Shri Mahur Agarwal, Advocates
Revenue by: Shri H. K. Choudhary, CIT DR

Date of Hearing 11/06/2021 (Last hearing)
Date of pronouncement 11/06/2021.

O R D E R

PER PRASHANT MAHARISHI, A. M.

1. These are three appeals for two Assessment years pertaining to one assessee, Mr. Valmik Thapar, a resident, Individual [Assessee]. Assessee filed ITA number 5767/Del/2015 for assessment year 2007 – 08 and ITA number 6346/Del/2014 for A Y 2010-11. Ld AO filed ITA number 6726/Del/2014 for AY 2010-11. All these appeals are on common issue and therefore, those are heard together and disposed of by this common order.
Assessment Year 2010-11

2. ITA number 6346/Del/2014 is filed by the assessee against the order of the Commissioner of Income Tax (Appeals) XXVI , New Delhi dated 25th of September 2014 for assessment year 2010 – 11 raising following grounds of appeal:-

i. on the facts and in the circumstances of the case, the appellate authority has erred in accepting the substituted fair market value of immovable property situated at 19, Kautilya Marg, New Delhi with ₹ 7,70,160/– as at 1 April 1981 instead of Rs 7,710,000/– based on the valuation report by an approved valuer and relied upon by the appellant.

ii. On the facts and in the circumstances of the case, the appellate authority has erred in not allowing assessee’s claim u/s 54 of the act for ₹ 37,913,760/– in respect of investment in residential flat in Mumbai.

3. In ITA number 6726/Del/2014, the learned Asst Commissioner of Income Tax, Circle – 53 (1), New Delhi [ The Ld AO ] is also aggrieved with the order of the Commissioner of income tax (Appeals) –XXVI, New Delhi [ The LD CIT (A) ] dated 25 September 2014 for assessment year 2010 – 11 on following counts raising grounds as under:-

To know more in details find the attachment file
 

FAQ :

The Income Tax Appellate Tribunal has ruled that deductions under Section 54 of the Income Tax Act are allowable for only one property.

The appeals covered assessment years 2007-08 and 2010-11.

The key issues included disputes over the substituted fair market value of a property and the assessee's claim for deductions on investment in a residential flat.

The assessee in these appeals was Mr. Valmik Thapar.

 



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