Amit Gupta Vs ACIT (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT), Delhi Bench, recently pronounced its order in the cross-appeals filed by Amit Gupta and the Assistant Commissioner of Income Tax (ACIT) for the Assessment Year 2006-07. The Tribunal’s decision clarified the application of Section 54B and Section 54F of the Income Tax Act, 1961, particularly concerning extended due dates for tax filings and the interpretation of joint property ownership for exemption claims.
Revenue’s Appeal: Section 54B Deduction and Extended Due Dates
The revenue’s appeal primarily challenged the Commissioner of Income Tax (Appeals) [CIT(A)]’s decision to allow the assessee’s claim for deduction under Section 54B of the Income Tax Act, amounting to Rs. 32,00,000. The core of the dispute revolved around the due date for depositing capital gains into the Capital Gains Account Scheme for claiming the deduction.
The assessee, Amit Gupta, had deposited Rs. 32,00,000 in the Capital Gains Account Scheme with Punjab National Bank on October 28, 2006. He contended that the due date for filing the return of income for Assessment Year 2006-07 was extended to October 31, 2006, by an order issued by the Central Board of Direct Taxes (CBDT) under Section 119(2)(b) of the Act, dated July 24, 2006.
