The Income Tax Appellate Tribunal (ITAT) Mumbai, in Amina Ismil Rangari v. ITO, held that tax reliefs under the Income Tax Act, 1961 cannot be denied to the assessee on ground of delay in filing Income tax returns.
Under section 54 of the Income Tax Act, any capital gain arising out of the sale of an old residential property is extended to the extent it is invested in the new property subject to the provisions of the Act.
In the instant case, the assessee, Amina Rangari, had invested Long Term Capital Gains arising on sale of shares in new house, and claimed a deduction under section 54F of Rs. 20 lakh. Initially she had not filed her I-T return for the financial year 2002-03, on the ground that she did not have any taxable income. However, when a notice was issued to her under section 148, she filed her return, and claimed the benefit of 54F. However, the claim was rejected by the AO on ground of delay in filing returns.
The division bench of the Tribunal observed that ‘despite the delay it was still an IT return filed pursuant to the notice that was issued’. A mere delay in filing would not render the I-T return as invalid.”
The bench further pointed out section 54F does not cast any statutory obligation on the taxpayer to file an I-T return within the stipulated time period under section 139 (as per the due dates set down for filing I-T returns) or under section 148 (which requires filing of the I-T return within 30 days of the notice).
The bench further clarified that the due date stipulated in section 54F, is in the context of the time limit within which the LTCGs that are not utilised, must be deposited in the capital gains account scheme. It does not relate to any delay in filing of the I-T return itself.
Read the full text of the Order below.
