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2020 (11) TMI 211 - AT - Income TaxReopening of assessment u/s 147 - Disallowance of claim u/s. 54EC - HELD THAT:- The admitted fact is that the assessee has declared long term capital gains and claimed deduction u/s. 54EC of the Act in AY 2009-10. The AO, in the reasons for reopening, has taken the view that the capital gains is assessable in AY 2008-09. Hence, the correct course of action as per the reasons for reopening was that the AO should have assessed long term capital gains in AY 2008-09. AO has not assessed the capital gains in assessment year 2008-09. Instead, he has disallowed claim of deduction made u/s. 54EC in assessment year 2008-09, while the assessee has actually claimed the said deduction in AY 2009-10. Hence the question of disallowing claim made u/s. 54EC of the Act shall arise only in assessment year 2009-10 and not in AY 2008-09. Since the assessee has not claimed any deduction u/s. 54EC of the Act in AY 2008-09, the question of making any disallowance of the said claim does not arise in AY 2008-09. Hence the AO was not justified in making disallowance of any amount, which was not claimed at all in AY 2008-09. CIT(A) was not justified in confirming the said disallowance. Direct the AO to delete the disallowance - Decided in favour of assessee.
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