Fresh Claim of Section 54F Cannot Be Rejected Mechanically – ITAT Remands for Reconsideration

Varadhan Sureshbabu Vs ACIT (ITAT Chennai) The ITAT Chennai held that a legitimate deduction claim cannot be denied merely because it was not correctly claimed in the return, and remanded the matter for fresh examination of Section 54F deduction. In this case, the assessee had sold a property and initially claimed deduction under Section 54, though the property was commercial in nature. During assessment, the assessee sought to claim deduction under Section 54F, but was unable to revise the return. The Assessing Officer rejected the claim and recomputed capital gains. The CIT(A) also upheld th...