Delhi HC Upholds Denial Of Capital Gain Exemption For Property Described In Sale Deed As “Makaan” But Having Brick-Kiln Construction

The Delhi High Court upheld an ITAT order denying capital gain exemption under Section 54F of the Income Tax Act for a property described as “makaan” (house) in the sale deed but actually having a brick kiln construction. The court found that the Assessing Officer’s inspection revealed a brick kiln on the property, contradicting the assessee’s claim of a residential house. The ITAT concluded that the investment was not in a residential house, as the sale deed did not mention any structure other than a “makaan.” The court noted that the term “makaan” in the sale deed did not refer to a residential house, and the property was described as agricultural land in revenue records. The High Court dismissed the assessee’s plea, supporting the ITAT’s findings.