Case Law Details
Lalit Kumar Kalwar Vs ITO (ITAT Jaipur)
In the case of Lalit Kumar Kalwar Vs ITO, the quantum appeal was allowed by the ITAT Jaipur. The appeal challenged the validity of the penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961.
The appellant claimed a deduction under Section 54F of the Act, which was denied by the assessing officer. The denial of the deduction resulted in the levy of a penalty of Rs. 4,17,900. The appellant appealed against the penalty to the Commissioner of Income Tax (Appeals), Ajmer, but the appeal was dismissed.
However, in a recent order by the ITAT in ITA No. 379/JP/2018, the impugned addition made under Section 54F was deleted. The tribunal found that the appellant had invested the entire actual sales consideration received in the purchase and construction of a new house, in accordance with the provisions of Section 54F(1) of the Act.
Based on the findings of the ITAT in the quantum appeal, it was concluded that the penalty could not hold its ground when the deduction under Section 54F had been granted. Consequently, the penalty of Rs. 4,17,900 was vacated.
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