Sep 13, 2022
ITAT comes to rescue of taxpayer over filing error
The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has frowned upon a “hyperpedantic approach” adopted by an I-T officer in denying a long-term capital gains (LTCG) exemption claimed by a non-resident taxpayer. The rejection was merely because she quoted a wrong section in her I-T returns against her claim.
Under the I-T Act, two key sections — section 54 and 54-F — provide for an exemption from long-term capital gains arising on sale of an asset (this original asset can be shares, tenancy rights or residential property) if an investment is made in a house property.