Farhat Shiekh Vs ITO (ITAT Mumbai)
Section 54F Relief Cannot Be Lost for Mentioning Section 54 – Wrong Section, Right Exemption of ₹8.80 Crore
Background
The assessee, a 76-year-old widow, filed her return of income for Assessment Year 2024-25 declaring total income of ₹14,71,660. She subsequently filed a revised return declaring the same income but correcting the fair market value of the original asset as on 1 April 2001.
During the relevant year, the assessee sold land measuring 4 Bighas and 16 Biswas situated at Village Satbari, Saket, New Delhi, for ₹9 crore. The land had been acquired in January 1994. After deducting the indexed cost of acquisition of ₹20,01,000, she computed long-term capital gains of ₹8,79,99,000.
The assessee invested the sale proceeds in a residential bungalow at Juhu, Mumbai, purchased from her two sons. An Agreement to Sell was executed on 6 June 2024, while the registered Deed of Transfer was executed on 21 May 2025. Both dates fell within the prescribed period calculated from the transfer of the original property on 21 December 2023.
However, while filing the return, the assessee inadvertently claimed the exemption under section 54 instead of section 54F.
Assessing Officer Denies the Entire Exemption
