ITAT Bangalore quashes Section 263 Order on Section 54F Deduction

Smt. Babitha Kemparaje Urs Vs CIT (ITAT Bangalore) Income Tax Appellate Tribunal (ITAT) Bangalore Bench recently set aside a revision order issued by the Commissioner of Income Tax (CIT) against Smt. Babitha Kemparaje Urs. The case involved a deduction claimed under Section 54F of the Income Tax Act, 1961, related to the investment in a new residential property. The ITAT’s decision hinged on the CIT’s failure to provide adequate hearing opportunities to the taxpayer and the Assessing Officer’s (AO) insufficient inquiry during the original assessment. The taxpayer’s assessment for t...