ITR
Capital gains exemption accepted without checks, now revised
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
If the officer accepted an exemption without asking for proof, the revising authority may treat that as lack of enquiry. Your defence is to show the officer did ask or that the claim is fully valid on facts.
Provisions and law
- Sec 263, Income-tax Act 1961 (now Sec 377, Income-tax Act 2025)The Principal Commissioner or Commissioner can revise an assessment order that is erroneous and prejudicial to revenue, after giving a hearing, within 2 years from the end of the financial year of the order.
- Sec 54, Income-tax Act 1961 (now Sec 82, Income-tax Act 2025)Exemption on reinvesting capital gain from a house into another house.
Analysis
Show the new house purchase deed, payment proof and dates that meet the Sec 54 time limits. If questions about it were asked during assessment, show those replies. Even if enquiry was thin, a fully valid claim weakens the prejudice to revenue. Present the computation clearly.
Conclusion
- Collect proofs for the exemption.
- Find any assessment notices that asked about it.
- Show the claim meets all conditions.
- Reply with computation and documents.
A Savvy can do this for you
Revision, Sec 263 (now 377)
₹4,999
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.