In the case before ITAT Delhi, the issue was the admissibility ...

Tribunal Allows Additional Evidence on Capital Gains, Citing Error in CIT(A) Rejection and Upholds Section 54F Claims.

May 23, 2024

Case Laws     Income Tax     AT

In the case before ITAT Delhi, the issue was the admissibility of additional evidence related to Long Term Capital Gains (LTCG) and deduction under section 54F. The assessee submitted evidence to prove that the agricultural land sold was not a capital asset and that the sale consideration was reinvested as per section 54F. The Tribunal held that the additional evidence should be considered under Rule 46A, despite not being presented before the Assessing Officer (AO). The CIT(A) erred in not admitting the evidence, citing a Supreme Court decision. The Tribunal emphasized that the CIT(A) has powers equal to the AO and can accept additional claims without the need for the assessee to revise the return. The appeal was allowed for statistical purposes.

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