IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘B’ NEW DELHI)

BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SH. YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No. 938/Del/2020 (A.Y. 2015-16)

DCIT Vs. Harpreet Kochar Central Circle-30, Room 5, KG Marg, No. 320, E-2 ARA Centre, New Delhi Jhandewalan Extension, PAN: AAIPK4656N New Delhi Appellant Respondent ITA No. 939/Del/2020 (A.Y. 2015-16)

DCIT Vs. Gurmeet Kochar Central Circle-30, Room 5, KG Marg, No. 320, E-2 ARA Centre, New Delhi Jhandewalan Extension, PAN: AAIPK4654Q New Delhi Appellant Respondent ITA No. 940/Del/2020 (A.Y. 2015-16)

DCIT Vs. Gurpreet Kochar Central Circle-30, Room 5, KG Marg, No. 320, E-2 ARA Centre, New Delhi Jhandewalan Extension, PAN: AIZPK6763F New Delhi Appellant Respondent C.O No. 46/Del/2023 in ITA No. 938/Del/2020 (A.Y. 2015-16)

HarpreetKochar Vs. DCIT, Central Circle-30, Room No. 5, KG Marg, 320, E-2 ARA Centre, Jhandewalan New Delhi Extension, New Delhi PAN: AAIPK4656N Appellant Respondent C.O No. 49/Del/2023 in ITA No. 939/Del/2020 (A.Y. 2015-16)

Gurmeet Kochar Vs. DCIT, Central Circle-30, Room No. 5, KG Marg, 320, E-2 ARA Centre, Jhandewalan New Delhi Extension, New Delhi PAN: AAIPK4654Q Appellant Respondent C.O No. 47/Del/2023 in ITA No. 940/Del/2020 (A.Y. 2015-16)

Assessee by Sh. Gautam Jain, Adv. Sh. Lalit Mohan, AR and Sh. Parth Singhal, Adv Revenue by Ms. Pooja Swaroop, CIT(DR)

Date of Hearing 14/05/2025 Date of Pronouncement 30/06/2025 ORDER PER YOGESH KUMAR, U.S. JM:

The captioned appeals and Cross Objections are filed by the Department as well as the Assessees against the orders of the Ld. Commissioner of Income Tax (appeals) (Ld. CIT(A)’ for short)-Delhi-27, dated 27/11/2019,27/11/2019 and 25/11/2019 respectively pertaining to the Assessment Year 2015-16.

2. The Ld. Counsel for the Assessee submitted that the Assessees will not be pressing the respective Cross-Objections, therefore, sought for dismissal of the above Cross-Objections. By recording the submission of the Ld. Assessee's Representative, C.O. No. 46/Del/2020, 49/Del/2020 and 47/Del/2020are dismissed as not pressed.

3. The Department in its Appeals, raised identical grounds, therefore, for the sake of convenience Grounds of Appeal in ITA No.938/Del/2020 are reproduced as under:-

“1. The Ld.CIT(A) has erred in law and on fact in ignoring that section 153A of Income Tax Act 1961 does not over-ride the provisions of Chapter-IV-E relating to Capital Gain and section

54F of the Income Tax Act 1961.

2. The Ld.CIT(A) has erred in law and on fact in allowing relief u/s 54F of Income Tax Act 1961 by ignoring the finding of the Assessing Officer that there was no investment in purchase of property at 5, K. G. Marg, New Delhi as the assessee was residing in the same property in capacity of Director and shareholder in the companies owning this property before the agreement to sell and also after agreement when the assessee was partner in the LLPs converted from same companies.

3. The Ld.CIT(A) has erred in law and on fact that the conversion of companies owning property at 5, K. G. Marg, New Delhi into LLPs was illegal for violation of provision of Section

47(xiiib)(f) of the Income Tax Act. 1961.

4. That the grounds of appeal are with prejudice to each other.

5. That the appellant craves leave to add, amend, alter or forgo any ground(s) of appeal either before or at the time of hearing of the appeal.”

4. Brief facts of the case are that, a search and seizure operation u/s 132 of the Income Tax Act, 1961 ('Act' for short) was conducted by the Investigating Wing of the Department on 22/10/2016 in Sukhija Group of cases along with others cases at various residential and business premises including the premises of the Assessees herein. A notice u/s 153A of the Act was issued to the Assessees, in response the Assessees have filed their respective Return. The assessment order came to be passed on 29/12/2018 by disallowing the exemption claimed by the respective Assesseesu/s 54F of the Act. The details are