45 total views

Claim of sec. 54 benefit couldn’t be denied just on ground that same wasn’t claimed in ITR filed by assessee: ITAT.

INCOME TAX : Commissioner (Appeals) have powers to consider claim of assessee which was left half way by Assessing Officer
INCOME TAX : Assessee sold a property and thereafter purchased a residential plot and constructed a residential house, claim of benefit under section 54 could not be disallowed only on ground that same was not claimed in IT return

Section 251, read with section 139, of the Income-tax Act, 1961 – Commissioner (Appeals) – Powers of (General) – Assessment year 2014-15 – Whether Commissioner (Appeals) have powers to consider claim of assessee which was left half way by Assessing Officer – Held, yes

Section 54, read with section 139, of the Income-tax Act, 1961 – Capital gains – Profit on sale of property used for residence (Illustrations) – Assessment year 2014-15 – Assessee sold a property and thereafter purchased a residential plot and constructed a residential house – He claimed deduction under section 54 – Assessing Officer rejected assessee’s claim and made an addition on account of long-term capital gain (LTCG) – Commissioner (Appeals) was of view that claim of benefit under section 54 could not be disallowed only on ground that same was not claimed in IT return – It was noted that Assessing Officer had taken into consideration information like cost of construction and other costs, provided by assessee to index income and calculate capital gains, however, Assessing Officer had left assessment half way by not inquiring into deduction if any claimed as applicable – Whether, in view of aforesaid, Commissioner (Appeals) had not fallen in error in extending benefit of deduction under section 54 to assessee – Held, yes

Mayur Batra
[2022] 145 taxman 587 (Delhi – Trib.)