ITAT Mumbai – Sec.54F Exemption Allowed on Under-Construction Flat Sec. 50C Addition Deleted; Penalty U/s 271(1)(c)

Kishore Anand Shetty Vs ACIT (ITAT Mumbai) The assessee challenged (i) addition u/s 50C based on higher stamp duty value and (ii) denial of exemption u/s 54F on reinvestment in a residential flat. The Tribunal noted that the original stamp valuation was wrongly inflated due to inclusion of an approach road area and was later rectified through a supplementary deed, reducing valuation below declared sale consideration. Hence, invocation of sec.50C failed and addition of ₹13.47 lakh was deleted. Regarding sec.54F, the AO denied exemption since the agreement for purchase of the new flat was date...