KRISHNAGOPAL B.NANPAL vs DY.COMMISSIONER OF INCOME-TAX,SPL. ARANGE -3 PUNE.

Judgment text excerpt

Ajit Pathrikar ITXA-569-2003-ajit.docx IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 569 OF 2003 Krishnagopal B. Nangpal ….Appellant : Versus : Dy. Commissioner of Income Tax Special Range – 3, Pune ….Respondent Mr. Nishant Thakkar with Ms. Jasmin Amalsadwala and Mr. Bhavesh Bhatia i/b Lumiere Law Partners, for the Assessee-Appellant. Mr. Akhileshwar Sharma, for the Revenue-Respondent. CORAM : ALOK ARADHE, CJ. & SANDEEP V. MARNE, J. Judgment Reserved on : 17 July 2025. Judgment Pronounced on : 22 July 2025. JUDGMENT (Per Sandeep V. Marne, J.): 1) The Assessee has filed the present appeal under provisions of Section 260 (A) of the Income Tax Act, 1961 (the Act) challenging the judgment and order dated 7th March 2003, passed by Income Tax Appellate Tribunal, Pune Bench dismissing his Appeal to the extent of exemption on capital gains under Section 54 of the Act arising out of sale proceeds of a flat in Mumbai used towards purchase of seven row houses in Pune. The appeal has been admitted by a Bench of this Court ______________________________________________________________________________ Page No.1 of 18 Ajit Pathrikar ITXA-569-2003-ajit.docx vide order dated 29th October 2004 on the following substantial question of law : On the facts and in the circumstances of the case, whether the Appellant is entitled for availing deduction under Section 54 of the Income Tax Act, 1961 against the entire capital gain arising out of sale of his flat in Mumbai in as much as he has invested the sale proceeds from the sale of his flat at Mumbai by joint venture agreement with Samant Estate Pvt. Ltd. for acquisition/construction of the 7 row houses in their project at Yashodanandan Viman Nagar, Pune ? 2) The solitary issue that arises