Criteria for Disallowance of Exemption u/s 54 of the Income Tax Act

This Income Tax Appellate Tribunal ruling addresses the disallowance of exemption under Section 54 of the Income Tax Act for the assessment year 2011-12. The assessee argued that the exemption was wrongly disallowed, as the conditions imposed by the CIT(A) were not prescribed by the Act itself. The tribunal considered two appeals related to the original assessment and an appeal giving effect to a previous order.

THE INCOME TAX APPELLATE TRIBUNAL
DELHI “F” BENCH: NEW DELHI
(THROUGH VIDEO CONFERENCING)

BEFORE SHRI G.S. PANNU, VICE PRESIDENT AND
SHRI KUL BHARAT, JUDICIAL MEMBER

ITA No.3270/Del/2019
Assessment Year : 2011-12

Rita Chandiok,
L-41, Connaught Circus,
New Delhi-110001.
PAN-AAAPC2224L
APPELLANT 

Vs

ACIT,
Circle-52(1),
New Delhi.
RESPONDENT

ITA No.5559/Del/2018
Assessment Year : 2011-12

Rita Chandiok,
C/o-Mr.Vinod Chandiok,
M/s. Walkar Chandiok & Co.,
L-41, Connaught Place,
New Delhi-110001.
PAN-AAAPC2224L
APPELLANT 

Vs

ACIT,
Circle-31(1),
New Delhi.
RESPONDENT

Appellant by Sh. Vinod Bindal, CA &
Ms. Sweety Kothari, Adv.
Respondent by Sh.Farhat Khan, Sr. DR

Date of Hearing 12.05.2021
Date of Pronouncement 03.06.2021

ORDER

PER KUL BHARAT, JM :

 These two appeals filed by the assessee are directed against the two different orders of Ld. CIT(A)-18, New Delhi dated 06.04.2017 and Ld.CIT(A)-35, New Delhi dated 05.03.2019 for the same assessment year 2011-12. 

2. Out of these two appeals, one appeal i.e. ITA No.3270/Del/2019 is against appeal giving effect by the Assessing Officer and ITA No.5559/Del/2018 is arising out of the original assessment proceedings.

3. Both appeals were heard together and are being disposed by way of a consolidated order. First, we take up ITA No.3270/Del/2019 [Assessment Year 2011-12] filed by the assessee. The assessee has raised following grounds of appeal:-

1. “The CIT(A) erred in law and on facts in confirming the disallowance of the exemption u/s 54 of the Act made by Assessing Officer while giving appeal effect to the CIT(A) order by not correctly appreciating the order of the CIT(A) wherein the said exemption was allowed to the assessee in para 5.10.15. Thus the exemption u/s 54 should be allowed to the assessee.

2. The CIT(A) erred in law and on facts in confirming the disallowance of exemption u/s 54 of the Act in the year under consideration on the basis of non-fulfillment of the condition imposed by the CIT(A in his order though no such condition is prescribed under the Act for claiming the said exemption and ignoring that the CIT(A) is not empowered to impose such condition. Thus the exemption u/s 54 should be allowed to the assessee.”

4. The only effective ground raised by the assessee in this appeal is against the disallowance of claim of exemption u/s 54 of the Income Tax Act, 1961 (‘the Act’).

To know more in details find the attachment file