KIRAN KUMAR GRANDHE,HYDERABAD vs. ITO, (INT TAXN)-1, HYDERABAD

ITA 1068/HYD/2026Status: DisposedITAT Hyderabad23 September 2026AY 2020-218 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that an appellate authority can entertain a claim for deduction under Section 54F even if not made in the return of income or before the Assessing Officer, provided there is a reasonable explanation. The issue was restored to the Assessing Officer for verification of eligibility.

What were the facts?

The assessee, a non-resident, did not file a return of income for AY 2020-21. The case was reopened, and the Assessing Officer proposed an addition of Rs. 1,00,00,000/- as short-term capital gain. The DRP directed that the gain be treated as long-term capital gain of Rs. 49,25,389/-.

What were the issues?

Whether the assessee can claim deduction under Section 54F for the first time before the appellate tribunal when it was not claimed in the return of income or before the lower authorities.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 143(2),Section 144C,Section 139,Section 54F,Section 254

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘B‘ Bench, Hyderabad

Before: Shri Ravish SoodShri Madhusudan Sawdia

Hearing: 16/09/2026

Per Madhusudan Sawdia, A.M.:

This appeal is filed by Shri Kiran Kumar Grandhe (“the assessee”), feeling aggrieved by the assessment order passed by the Assessing Officer under section 147 r.w.s. 144C(13) of the Income Tax Act, 1961 (“the Act”) for A.Y. 2020- 21, dated 28.01.2026 as per the directions of the Learned CIT (DRP)-1, Bengaluru-2 (“Ld. DRP”) dated 27.12.2025. 2. The assessee has raised the following grounds of appeal:

“1. On the facts and circumstances of the case , the order pass

The order continues below.

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