2014 (5) TMI 1076

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....f the Income Tax Act (hereinafter referred to as the Act). 2. At the outset, the ld. A.R. of the assessee has been fair enough to state that since the investment in bonds was prior to the date of occurrence of capital gains, hence the assessee was not entitled to claim exemption under section 54EC and even the said claim was not pressed before the ld. CIT(A) also. Hence the ground No.1 vide which the assessee has agitated the disallowance of deduction under section 54EC, is accordingly dismissed. 3. The assessee, however, has strongly agitated the disallowance of claim under section 54F of the Act. The assessee in his return of income had shown to have earned long term capital gain of Rs. 3,58,827/-. However, he had not claimed in ....

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....d on 21.06.12, has contended that even though the claim was not admitted by the AO because of non-filing of the revised return, the assessee had raised the additional plea of his claim before the ld. CIT(A) and the ld. CIT(A) ought to have considered the claim of the assessee. On the other hand, the ld. D.R. has strongly relied upon the finding of the lower authorities. 6. We have considered the rival submissions of the ld. representatives of the parties. We may observe that the Hon'ble Bombay High Court in the case of 'Pruthvi Brokers & Shareholders Pvt. Ltd.' (supra), while relying upon the various decisions of the Hon'ble Supreme Court and other Hon'ble High Courts, has held that even if a claim is not made before the AO it can be ....

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....r the grounds which became available on account of change of circumstances or law. The words 'could not have been' raised must be construed liberally and not strictly. It is open to the assessee to claim a deduction before the appellate authority which could not have been claimed before the AO. The Hon'ble Bombay High Court has further observed that the decision of Hon'ble Supreme Court in the case of 'Goetze (India) Limited v. CIT' (2006) 157 Taxman 1, regarding the restriction of making the claim through a revised return was limited to the powers of the Assessing Authority and the said judgment does not impinge on the power or negate the powers of the appellate authorities to entertain such claim by way of additional ground. 7. Further....