Denial of exemption u/s. 54 due to mistake committed by developer unjustified: ITAT Mumbai

Mukesh Harilal Mehta Vs ITO 16(3)(1) (ITAT Mumbai) ITAT Mumbai held that denial of exemption under section 54 of the Income Tax Act unjustified as appellant cannot be penalized for the mistake committed by the developer/seller in allocating the flat. Thus, exemption u/s. 54 granted as all the conditions satisfied. Facts- During the course of assessment proceedings, the Appellant was asked to provide the details of purchase/sale of property, and exemption claimed u/s. 54 of the Act. Appellant responded it received sale consideration of INR 14,40,00,000/- as his share from sale of property. The ...