Case Law Details
Late Gurdip Singh Kapur Vs ACIT (ITAT Delhi)
Introduction: In a significant ruling by the Income Tax Appellate Tribunal (ITAT) Delhi, the tribunal has addressed the pivotal issue surrounding the non-claim of Section 54 deduction in both original and revised returns. The case in question is “Late Gurdip Singh Kapur Vs ACIT”.
Background of the Case: The assessee had contested the final assessment order for the assessment year 2017-18, specifically raising concerns about the denial of deduction under section 54 of the Income-tax Act, 1961. Central to the dispute was the manner in which the assets were transferred and the subsequent capital gains.
Delay in Filing the Appeal: The Registry had highlighted a two-day delay in the appeal filing. However, given the circumstances involving the death of the assessee and the involvement of a legal heir based in the USA, ITAT found the delay reasonable and admitted the appeal.
Restriction on Deduction Claim: The core contention arose when the Assessing Officer (AO) rejected the assessee’s claim for a deduction under section 54 because it wasn’t claimed in the original or the revised return. The AO’s stance was further backed by the precedent set by the Supreme Court in the case of Goetze (India) Ltd. v. CIT.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
