CBDT cannot extend time to claim deduction under section 54F

Shivinder Singh Brar, Karta (HUF) Vs. CBDT (Punjab and Haryana High Court)

 The relaxation in terms of section 119(2)(c) can be sought by the assessee at the time of claiming deduction and such claim can be made only within the time period, as prescribed under the Act for making such claim. There is nothing in section 119(2) of the Act which gives any power to the Board to extend the time to claim the deduction.

While applying the aforesaid principle, to the facts of the present case, the petitioner could have applied for relaxation for claiming the benefit under section 54F only within the time prescribed under that section and that too, if before making such claim, he had complied with the required conditions to claim such deduction. That not being there in the present case, we are of the opinion that the Board rightly rejected the petitioner’s application.

FULL TEXT OF THE HIGH COURT JUDGMENT / ORDER IS AS FOLLOWS:-

Through the present petition, the petitioner seeks quashing of order dated 3-3-2015 (Annexure P-12), through which, application of the petitioner to condone the delay and for the grant of extension of time to comply with the requirements of section 54-F of the Income Tax Act, 1961 (for short – the Act) for claiming a deduction there under, was rejected by the Central Board of Direct Taxes (for short – the Board), on the ground that the petitioner had failed to demonstrate compliance of section 119(2)(c)(ii) of the Act.

Please become a member. If you are already a member, login here to access the full content.