ITAT Upholds Tax Benefit for Reinvestment During Reassessment
Representative Image MUMBAI: In a ruling favoring taxpayers, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has determined that a claim for capital gains exemption under Section 54 of the Income Tax (I-T) Act cannot be rejected solely due to the absence of an initial I-T return. The tribunal stated that such claims should be considered if made during reassessment proceedings. The case centered around M Sheikh, a taxpayer who initially did not file an ‘original’ I-T return as required under Section 139(1) but later submitted it in response to a notice for reassessment under Section 148. This…