Abdul Jabbar Jaheer Husain Vs ITO (ITAT Chennai)
The Income Tax Appellate Tribunal (ITAT), Chennai, heard an appeal filed by the assessee challenging the order of the Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Delhi, dated 30th June 2024, passed under section 250 of the Income Tax Act, 1961, for the Assessment Year (AY) 2016-17. The sole issue before the Tribunal was whether the First Appellate Authority (FAA) was justified in confirming a penalty of Rs.4,62,819/- levied under section 271(1)(c) of the Income Tax Act.
The assessee, an individual, filed his return of income on 30th March 2018, declaring business/professional income of Rs.1,46,560/-, Long Term Capital Gain (LTCG) of Rs.15,33,315/-, and income from other sources of Rs.15,344/-. In the return, the assessee erroneously claimed deduction under section 54B, while the correct claim pertained to section 54F of the Act. The return disclosed a claim of deduction of Rs.2,67,72,584/- under section 54F. The assessment was selected for limited scrutiny to examine the claim of exemption under section 54F. During assessment proceedings, the Assessing Officer (AO) noted that the assessee had not produced sufficient evidence to substantiate the expenditure for claiming the deduction. Consequently, the AO disallowed the deduction under section 54F and completed the assessment under section 143(3) on 30th December 2018.
