Case Law Details
Subba Raju Chekuri Vs ITO (ITAT Hyderabad)
Introduction: In a recent tax dispute, Subba Raju Chekuri contested against the Income Tax Officer (ITO) before the Income Tax Appellate Tribunal (ITAT) in Hyderabad. The case arose from the assessment year 2012-13 and was centered around the failure of the assessee to provide evidence in support of their claim for deduction under Section 54F of the Income Tax Act.
Detailed Analysis: The matter originated from an order issued by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) in Delhi, dated 15th June 2023. The proceedings were initiated under Section 147 of the Income Tax Act, 1961, with reference to Section 144 of the same Act.
The grounds raised by the assessee covered a range of issues, including the validity of the assessment order, allegations of procedural violations, and challenges to the application of Section 50C and Section 54F. However, the core of the dispute revolved around the inability of the assessee to furnish supporting documents for the deduction claimed under Section 54F.
The Assessing Officer noticed that the assessee had not filed their income tax return for the assessment year 2012-13, despite having realized capital gains from the sale of an immovable property during the financial year 2011-12. The sale consideration was declared as Rs. 34,83,000, whereas the market value was significantly higher at Rs. 77,50,000. In the absence of PAN details and an explanation for the difference in value, the Assessing Officer issued a notice under Section 148 in March 2019.
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