New Delhi, Aug. 20 -- A taxpayer who constructed a new house before selling his old residential property has won a case against the tax department. In its 3 August 2026 order in Raj Kumar vs ITO, ITA No. 3396/Del/2026, the ITAT Delhi quashed the reassessment after finding that the Section 148 notice was issued beyond the permissible limitation period.

Raj Kumar, a resident of Rajouri Garden, Delhi, owned a residential flat in Paschim Vihar, which he had purchased on 20 July 2005 for Rs.6.48 lakh, including stamp duty. He sold the property on 9 October 2013 for Rs.53 lakh. Since he had held the property for more than 36 months, the resulting gain was treated as long-term capital gain.

Kumar claimed a Section 54 exemption after investing ...