Belated but Bona Fide: ITAT Deletes Penalty on Capital Gain Claim- When Deduction is Valid, Penalty is Invalid

Tejas Ghanshyambhai Patel Vs ITO (ITAT Ahmedabad)

Assessee, a proprietor who sold an immovable property as co-owner & received ₹1.8 Cr (30% share), claimed deduction u/s 54EC (₹50L) & u/s 54F (₹36.27L). The return was filed belatedly (24-03-2017) & revised belatedly. AO denied both deductions & added ₹86.27L, thereafter levied penalty u/s 271(1)(c) for furnishing inaccurate particulars.

In quantum appeal, CIT(A) accepted that the investments were mostly within the allowed timeline (till 31-07-2016) & directed AO to proportionately allow deduction

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