Sec. 54 of Income Tax Act, 1961—Capital gain—Addition made is unwarranted as assessee doesn’t have more than one house which is chargeable to tax under the head “income from house property” other than the one residential house owned on the date of sale of original asset.

Facts: Appeal has been filed by assessee raising the ground that orders of the authorities below are against the facts and pleading before the authorities below in respect of the construction on the property at D-279, Defence Colony, New Delhi in respect of which the deductions u/s 54F was claimed. There is no dispute with regard to the amount of investment in the construction of the house at D-279, Defence Colony, New Delhi claimed at Rs.1,76,95,024/- which was provided out of the capital gain a/c. scheme provided permissible under the law.

Held, that from the perusal of the facts, we hold that the revenue authorities have mislead themselves on holding that the purchase of the Rajendra Nagar flat out of the sale proceeds of the original asset was on the basis of wrong facts. Hence, keeping in view the facts of the case that the capital gains have been utilized for construction of house at D-279, Defence Colony, New Delhi and as per the provisions of the Act, the assessee doesn’t have more than one house which is chargeable to tax under the head “income from house property” other than the one residential house owned on the date of sale of original asset, we hereby hold that the addition made by the revenue authorities is unwarranted. In the result, the appeal of the assessee is allowed. - SUNIL MALHOTRA V/s ASSTT. CIT - [2020] 80 ITR (TRIB) 372 (ITAT-DELHI)