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ITA No. 2962/Del/2025

Azizul Ghani (AY: 2015-16)

IN THE INCOME TAX APPELLATE TRIBUNAL

“C” BENCH, DELHI

BEFORE SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER &

SHRI VIMAL KUMAR, JUDICIAL MEMBER

ITA No. 2962/Del/2025

(Assessment Year: 2015-16)

Azizul Ghani Vs. ITO, Ward 63(3)

1407 Pan Mandi E-2, Block, Civic Centre,

Sadar Bazar, New Delhi – 110002

Delhi – 110006

(cid:1)थायीलेखासं./जीआइआरसं./PAN/GIR No: AAJPG7737K

Appellant .. Respondent

Assessee by : Ms. Rano Jain, Adv.

Ms. Mansi Jain, Adv..

Department by : Sh. Om Prakash, Sr. DR

Date of Hearing 06.11.2025

Date of Pronouncement 03.02.2026

O R D E R

PER VIMAL KUMAR, JM:

The appeal filed by the assessee is against the order dated 17.03.2025

of Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi (hereinafter

referred to as ‘The CIT’) u/s 250 of the Income Tax Act, 1961 (hereinafter

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ITA No. 2962/Del/2025

Azizul Ghani (AY: 2015-16)

referred to as ‘the Act’) arising out of assessment order dated 22.12.2017 of

Ld. AO/ITO, Ward 63(3), Delhi, u/s 143(3) of the Act for AY: 2015-16.

2. Brief facts of the case are that assessee filed return of income on

29.03.2016 declaring income of Rs.18,71,470/-. The return was processed u/s

143(1) of the Act at returned income. The case was selected by CASS for

limited scrutiny for verification of the claim of deduction under head capital

gain. Notices u/s 143(2) and 142(1) were issued. On completion of

proceedings ld. AO vide order dated 22.12.2017 held that an impugned of

Rs.35,00,000/- qualifies for deduction u/s 54 of the Act and the amount of

Rs.6,66,46,841/- did not qualify deduction and same was added back to the

income of assessee under the head of long term capital gain.

3. Against order dated 22.12.2017 of ld. AO the assessee filed appeal

before the ld. CIT(A) which was dismissed vide order dated 17.03.2025.

4. Being aggrieved appellant assessee preferred present appeal with

following grounds:

“1. That the order passed by the Ld. Commissioner of Income Tax (Appeals) -

National Faceless Appeal Centre (NFAC), dated 17.03.2025, is bad in law and on

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ITA No. 2962/Del/2025

Azizul Ghani (AY: 2015-16)

facts and liable to be quashed, being contrary to the facts of the case and settled

judicial principles.

2. That the Ld. CIT(A) has erred in upholding the denial of exemption under Section

54 of the Income Tax Act, 1961, without properly appreciating the evidences,

facts, and circumstances of the case.

3. That the Ld. CIT(A) failed to appreciate that the new residential property at A-

227, New Friends Colony, New Delhi was substantially acquired and constructed

well within the statutory period of 3 years from the date of transfer, and the

registration of deed for ½ share was delayed by a mere 15 days due to procedural

technicalities, despite substantial payments already made prior to the expiry of the

period.

4. That the Ld. CIT(A) has not passed a speaking order on the revised and corrected

computation of capital gains submitted during the appellate proceedings, wherein

the assessee had provided a detailed and substantiated working of the indexed cost

of acquisition, including:

• Indexed cost of 32.5% share of original purchase price of Property No. B-480,

New Friends Colony, New Delhi (purchased on 12.08.1985) 5,98,000 ×

32.5% × 1024/133 = 14,96,349

• Indexed cost of Freehold Charges (paid on 14.10.1999) 1,35,546 × 32.5% ×

1024/389 - 1,14,252

• Proportionate indexed cost of construction during FY 2008-2010 77,50,652 ×

(374.86/940.61) × 1024/711 = 44,48,649

Total Indexed Cost of Acquisition = 69,43,452

Resulting Correct Long-Term Capital Gain = 6,47,06,548

(against the assessed figure of 7,01,46,841 or the incorrect revised figure of

5,95,05,940)

5. That the Ld. CIT(A) erred in law and on facts in not appreciating that the proof of

construction of the new property was duly submitted during the appellate

proceedings in the form of construction bills, architect-approved maps, MCD

inspection reports, bank statements, and final registered sale deed, all of which

clearly demon