AO must allow benefit U/s. 54F not claimed in return but during Assessment Proceedings

Assessing Officer as well as CIT(A) have denied the benefit of section 54F deduction to the assessee on the ground that same was not claimed in the return of income filed by the assessee. We are of the considered view that if during the course of assessment proceedings, the assessee filed details of claim of exemption of the same u/s.54F of the Act, the Assessing Officer is duty bound to entertain those details and verify the same and if the assessee is found eligible otherwise as per the conditions u/s.54F of the Act, he is bound to allow deduction to the assessee. Our view finds support from the circular of CBDT No.014(XL)-35) dated 11.4.1955. Further, we find that the assessee has filed all details for claim of deduction u/s.54F before the CIT(A), who held against the assessee on the ground that the assessee had not claimed deduction in the return of income. We find that Hon’ble Supreme Court in the case of Goetz (India) Ltd (supra) has categorically held that the decision does not impinge upon the power of the appellate authority. In view of the above findings of Hon’ble Supreme Court, we feel it would be just and fair to remand back the issue of allowability of deduction u/s.54F to the file of the Assessing Officer for adjudication afresh as per law after considering all the details and evidence filed by the assessee in support of the claim.