CIT(A) Notices unserved, issued during Covid: ITAT remands Capital Gains Exemption Claim

The ITAT remanded a case involving the rejection of a capital gains exemption claim due to notices issued during the COVID-19 pandemic being unserved. The tribunal noted that non-service of notices violated principles of natural justice. The case involves capital gains claimed under Section 54 of the Income-tax Act, with the taxpayer arguing procedural lapses by the assessing officer. ITAT directed the officer to reconsider the case, ensuring proper service of notices and granting the taxpayer an opportunity to present their case. This ruling underscores the importance of fair procedural practices, particularly during extraordinary circumstances like a pandemic. Legal experts view the decision as a reminder to tax authorities to adhere to procedural fairness. It highlights the necessity of balancing compliance enforcement with taxpayer rights, especially in cases where procedural lapses affect outcomes.