Syed Hussain Syed Asif Vs ACIT (ITAT Chennai)
Income Tax Appellate Tribunal (ITAT), Chennai bench, has sent back the case of Syed Hussain Syed Asif to the Assessing Officer for a fresh assessment concerning the denial of exemption claimed under Section 54F of the Income Tax Act, 1961. The assessee’s appeal for the Assessment Year 2017-18 was partially allowed by the tribunal for statistical purposes, providing a new opportunity to submit necessary documentation that was not presented during the initial assessment or first appellate stages.
The case originated from the assessment framed by the Assistant Commissioner of Income Tax, Circle 1, Hosur, under Section 143(3) of the Act. Syed Hussain Syed Asif, an individual operating a medical shop, had filed his return for AY 2017-18 declaring an income of Rs. 14,63,060. The dispute arose following the sale of a property measuring 9600 Sq. ft. for a consideration of Rs. 2,75,00,000. The assessee claimed a significant exemption of Rs. 2,54,57,551 under Section 54F, which allows exemption on long-term capital gains if the net consideration is invested in a new residential house property within a specified period.
The case was selected for scrutiny under the Computer Assisted Scrutiny Selection (CASS), leading to notices being issued to the assessee. During the assessment proceedings, the Assessing Officer observed that the assessee had not adhered to a fundamental condition for claiming exemption under Section 54F, which mandates the deposit of any unutilised capital gains amount in a designated Capital Gains Account Scheme with specified banks before the due date of filing the return under Section 139(1) of the Act.
