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Judgment
This assessee’s appeal for assessment year 2015-16, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1083505061(1), dated 10.12.2025 involving proceedings under section 147 r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
It is evident during the course of hearing that both the learned lower authorities have declined the assessee’s section 54 deduction claim amounting to Rs. 42,45,689/- for the sole reason that he had reinvested the capital gains in question arising from sale of the transfer of his capital asset; to the extent of 50% in the name of his wife Smt. Shobha. This being the clinching factual position, Revenue could hardly dispute that hon’ble jurisdictional high court in CIT vs Ravinder Kumar Arora (2011) 15 taxmann.com 307 (Del) has already settled the very issue in assessee’s favour and against the department that such an investment of capital gains in the assessee’s name himself as per provision of the Act. Faced with this situation, I find merit in the assessee’s instant sole substantive ground to accept his aforesaid section 54 deduction in very terms.
This assessee’s appeal is allowed.