Karnataka HC Sets Aside 154 Rectification; Remands for Fresh Consideration of Sec 54 Claim on CGAS

Susan Thomas Vs ITO (Karnataka High Court) The Karnataka High Court set aside a rectification order passed under Section 154 for AY 2011–12, holding that the assessee’s claim of exemption under Section 54-based on deposit in the Capital Gains Account-required proper consideration. Since supporting material was produced, the Court found it appropriate to remand the matter to the Assessing Officer for fresh adjudication. Importantly, the issue of whether Section 154 proceedings were validly invoked was kept open for reconsideration. The assessee was directed to appear before the AO without a...