Rebate granted to the assessee, pursuant to contractual terms, does not constitute real income.

7. TS-258-ITAT-2026(DEL)

Satya Prasan Rajguru v. DCIT

A.Y.: 2021-22

Date of Order: 26.2.2026

Section: 56

Rebate granted to the assessee, pursuant to contractual terms, does not constitute real income.

FACTS

For the assessment year under consideration, the assessee filed the return of income on 31.12.2021, which was subsequently revised on 31.03.2022, declaring a total income of ₹1,94,39,080/- and claiming deduction u/s 54F of the Act to the tune of ₹9,65,05,033/-. The Assessing Officer (AO) denied the claim of deduction under section 54F of the Act.

Further, the AO observed that the assessee has purchased an apartment in Gurugram for a consideration of ₹32,95,29,561 and had received a rebate of ₹9,81,39,230/- from the developer. The AO rejected the contentions of the assessee that the rebate amount cannot result in an addition to the total income, since the stamp duty value of the apartment was lower than the consideration (net of rebate). The AO considered the rebate of ₹9,81,39,230 to be taxable under section 56(1) of the Act