9911796707
TMI Blog2018 (4) TMI 1427X X X X Extracts X X X X X X X X Extracts X X X X ..... mputing the income of the assessee for long term capital gains at Rs. 5,98,464/- after disallowing the claim of the assessee for deduction of Rs. 5,98,464/- u/s 54F of Income tax Act. Learned CIT (A) has erred in confirming the order of learned AO. 3. Learned AO and CIT (A) have erred in not following binding Circular No. 14(XI-35) of 1955 dated 11.4.55 of CBDT supported by plethora of judgements from Hon'ble Supreme Court. 4. Learned CIT (A) has erred in not allowing the deduction u/s 54F of Rs. 5,98,464/- claimed by the assessee before him even though he had all the powers to entertain such claim. 5. the assessee craves his right to add, alter, amend or delete any grounds of appeal at the time of hearing or earlier." 2. The onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e revised return of income as per the provisions of section 139(5) and, therefore, the AO relied upon the decision of the Hon'ble Supreme Court in the case of Goetze (India) Ltd. vs. CIT (2006) 284 ITR 323 (SC) and held that the fresh claim cannot be allowed to the assessee without a valid revised return. The assessee challenged the action of the AO before the ld. CIT (A) but could not succeed. 3. Before us, the learned A/R of the assessee submitted that the claim of deduction under section 54F is purely legal in nature and also in respect of the income which was offered to tax during the course of assessment proceedings. Therefore, it is not a fresh claim which requires any revised return of income but the claim was against the income ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f purchase of a new property in the original return of income and even at the time of filing the first revised computation of income. The assessee purchased a new property on 14.8.2012 but the same was not disclosed in the return of income filed by the assessee subsequent to that purchase. The ld. D/R has also objected for admission of this claim under section 54F by the appellate authority on the ground that the claim involved legal as well as factual aspects and, therefore, it requires verification of facts for adjudication of the issue. The ld. D/R has further contended that the decision relied upon by the assessee is not applicable in the facts of the present case. 3.2 In re-joinder, the ld. A/R has submitted that the assessee has duly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Deed. The AO has also not conducted any enquiry on this point and accepted the income surrendered by the assessee. The assessee then also claimed deduction under section 54F on account of purchase of new property by the assessee. The Sale Deed through which the assessee purchased the new property was also filed before the AO. However, the AO did not entertain the claim of the assessee on technical ground that the assessee has not filed the revised return of income. On appeal, the ld. CIT (A) has also declined to entertain the claim of the assessee and rejected the same on threshold as under :- " As regards deduction u/s 54F it is seen that no claim what so ever was filed before the AO in the original return nor a revised return was filed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 54F made by the assessee against the said addition/surrender made during the course of assessment proceedings. Even otherwise, when the assessee in the revised return has declared long term capital loss then the question of claim under section 54F does not arise. Once the long term capital gain is assessed as per the provisions of section 50C of the Act, then the claim of deduction under section 54F is consequential to the addition made by the AO which was not an income declared in the return of income. Hence the approach of the authorities below rejecting the claim of the assessee by applying the decision of Hon'ble Supreme Court in the case of Goetze (India) Ltd. vs. CIT (supra) is not right and proper. In any case, there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
