Wrong Section Claim Not Fatal: ITAT Remands Matter & Nullifies Penalty

Annapurna Dibbur Girish Vs ACIT (ITAT Bangalore) The ITAT Bangalore held that claiming deduction under the wrong section (Section 54 instead of 54F) is not fatal, and restored the matter for fresh examination, while also knocking down the penalty. The assessee had sold properties and claimed deduction of ₹2.03 crore under Section 54, which the AO denied on the ground that the correct provision was Section 54F, resulting in addition to income. Although the CIT(A) dismissed the appeal as time-barred (delay of 1226 days), the Tribunal took a lenient view in the interest of natural justice, noti...