Claim of sec. 54 benefit couldn’t be denied just on ground that same wasn’t claimed in ITR filed by assessee: ITAT.
ACIT Vs. Mayur Batra
Delhi ITAT
Decided on 29.09.2022
Let us have a short overview of the case:
In this case, Assessee sold a property and thereafter purchased a residential plot and constructed a residential house.
Assessee failed to claim the exemption u/s 54 in the ITR Filed for the relevant assessment year.
During assessment proceeding, the Learned Assessing Officer disallowed only on ground that same was not claimed in IT return
Another issue involved was whether Commissioner (Appeals) have powers to consider claim of assessee which was left half way by Assessing Officer?
Assessee preferred an appeal against not considering the claim of the Assessee U/s 54.
The relevant Section in the case were 251, read with section 139, of the Income-tax Act, 1961 & section 54 of the Income-tax Act, 1961.
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. CIT (A) allowed the claim of the deduction u/s 54 to the Assessee.
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. So, whether in view of aforesaid, Commissioner (Appeals) had not fallen in error in extending benefit of deduction under section 54 to assessee? CIT answered it in affirmative.
Conclusion:
- Claim of benefit under section 54 could not be disallowed only on ground that same was not claimed in IT return.
- Commissioner (Appeals) have powers to consider claim of assessee which was left half way by Assessing Officer
