Tax Benefit Claim Not Affected by Builder’s Mistake: ITAT

Date:

Share post:

In a unique case handled by the Income-tax Appellate Tribunal (ITAT) in Mumbai, a taxpayer named Mukesh Harilal Mehta had requested a deduction under section 54 of the Income-tax (I-T) Act for the financial year 2014-15. The tax tribunal decided that Mehta’s claim couldn’t be rejected just because the builder made a mistake in assigning the flat.

Section 54 of the I-T Act says that if someone sells a house and then buys another one within a certain time, they can avoid paying tax on the profit made from selling the first house.

Mehta followed all the rules for this deduction. However, the tax officer said no because there wasn’t a proper document showing that Mehta bought the new flat. Also, the details in the letter saying Mehta could have the new flat were different from the one he paid for.

The ITAT said it wasn’t fair to punish Mehta for the builder’s mistake.

Also read: Chennai Emerges as Hotspot for Real Estate Investments

Related Posts

Latest posts

Haryana Government to Connect Under-Construction Global City Project With Delhi-Gurgaon Expressway

The Haryana government is planning to build a 60-meter-wide road linking the Delhi-Gurgaon Expressway to the under-construction Global...

Noida To Get 400-Metre Circular Skywalk at Sector 62/63

A new 400-meter circular skywalk is set to be constructed at the busy Sector 62/63 intersection in Noida....

India’s Data Center Capacity to Cross 4,500 MW by 2030 – Colliers Report

India’s data center capacity across the top seven cities is projected to exceed 4,500 megawatts by 2030. This...

New Elevated Road to Connect Greater Noida and Delhi-Meerut Expressway

The Greater Noida Authority on Friday approved a proposal to construct a 4-kilometer elevated road. This road will...