New Delhi, Oct. 15 -- A taxpayer who inherited a residential property from his mother and received Rs.75 lakh from a builder under a redevelopment agreement has won relief in a capital gains tax dispute before the Income Tax Appellate Tribunal (ITAT), Delhi. The tribunal ruled that the tax authorities could not deny an exemption under Section 54 of the Income-tax Act, 1961, merely because the redeveloped property comprised multiple floors.

In Ranjan Sen Jain v. Income-tax Officer, ITA No. 8561/Del/2025, for assessment year 2020-21, the tribunal also directed the tax officer to reconsider the computation of long-term capital gains using the taxpayer's registered valuation report. The order was pronounced on 13 July 2026.

Jain inherited a...