Case Law Details
Hemant Dinkar Kandlur Vs CIT (Bombay High Court)
The Bombay High Court has delivered a significant judgment in the case of Hemant Dinkar Kandlur vs. CIT, addressing the retrospective application of an amendment to Section 54F of the Income Tax Act, 1961. This article provides an in-depth analysis of the case and its implications.
Detailed Analysis: The case revolves around a dispute concerning the applicability of Section 54F of the Income Tax Act. The petitioner, a Non-Resident Indian working in the USA, sold a residential property in India and invested the sale proceeds in the purchase of another residential property in the United States of America. He believed that his income was not taxable in India due to his NRI status and filed a return of income for Assessment Year 2014-15, showing NIL taxable income.
However, the Centralized Processing Centre (CPC) processed his return and determined a tax refund due to him. It was during this process that it was discovered that the petitioner had sold a residential property in India and invested the capital gains in a property in the USA, exceeding the amount of Long Term Capital Gain (LTCG). The petitioner also deposited an amount greater than the LTCG into a Capital Gain Account Scheme (CGAS).
Upon realizing that he had misunderstood the tax provisions, the petitioner applied for a rectification of the return. Subsequently, he sought a revision of the intimation under Section 143(1) of the Act. He informed the tax authorities of his investment in a property in the USA and requested the release of funds deposited in the CGAS.
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