The Income Tax Appellate Tribunal (ITAT) Delhi has deleted the addition made towards long-term capital gains and allowed the assessee's claim of long-term capital loss amounting to Rs 2.94 crore.
Saima | Jun 25, 2026 |
ITAT Deletes Addition And Allows Rs 2.94 Crore Long Term Capital Loss Claim on Sale of Jointly Owned Property
The Income Tax Appellate Tribunal (ITAT) Delhi observed that the Revenue could not take a contradictory stand in the case of one co-owner after having accepted an identical claim made by the other co-owner in respect of the same property and the same transaction.
The assessee, Shalini Rajput, filed her return of income for assessment year 2022-23 declaring a total income of Rs 5.60 lakh. During scrutiny proceedings under Sections 143(3) read with 144B of the Income Tax Act, 1961, the AO examined the claim of long-term capital loss of Rs 2.94 crore arising from the sale of a residential property. The property was purchased jointly by the assessee and her husband for a total consideration of Rs 3.81 crore.
While calculating capital gains, the assessee claimed the cost of acquisition and interest expenditure on loans taken for acquiring the property. However, the AO disallowed the claim relating to indexed cost and cost of improvement amounting to Rs 3.87 crore and recalculated the transaction, determining a long-term capital gain of Rs 92.71 lakh.
The NFAC upheld the addition, following which the assessee approached the ITAT.
The assessee contended that the property had been acquired through instalment payments spread over different years and that indexation was allowable from the respective years of payment.
After considering the submissions and examining the record, the Tribunal noted that under the same facts and circumstances, the Department had accepted the calculation of long-term capital loss in the case of the assessee’s husband. The Tribunal observed that the Revenue authorities could not adopt contradictory positions with respect to the same property transaction when both assessments had been completed after scrutiny.
Accordingly, the Tribunal deleted the addition and directed the AO to allow the assessee’s claim of long-term capital loss of Rs 29,441,694. Accordingly, the appeal filed by the assessee was allowed.
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