Capital Gain exemption not claimed in the original ITR: Can it be claimed in the ITR filed in response to Notice U/s 148?
This is one of the common questions which is raised as to Capital Gain exemption not claimed in the original ITR. Whether it can be claimed in the ITR filed in response to Notice U/s 148?
One may note that Hon’ble Supreme court in CIT Vs. Sun Engineering Works (P) Ltd 198 ITR 297 has held that section 147 or 148 is for the benefit of the revenue and not for the benefit of the assessee. Therefore, the exemption claimed u/s 54F of the Act, which is not claimed in the original return of income should be disallowed entirely in view of the decision.
Recently, Hyderabad ITAT in the case of Shri Srinivas Bejgam vs. ACIT [ITA No. 809/Hyd./2019, Assessment Year: 2010-11] has held that since S.54F of the Act is a beneficial provision and the Hon’ble Courts have held that the beneficial provision should be construed liberally, exemption U/s 54F should be allowed even if the same is not claimed in the original ITR.
The copy of the order is as under: