July 2025
Where assessee is otherwise eligible to claim deduction and has submitted computation, mere typographical error in claiming deduction under section 54 instead of section 54F does not disentitle the assessee from getting relief under section 54F. Limitation of allowing deduction only if claimed in the return of income applies only to the AO and not to the Appellate Authority which can allow correct claim if facts on record support the claim being made.
By Jagdish T Punjabi, Chartered Accountant
Devendra Jain & Aditya Bhatt, Advocates
Reading Time 3 mins
21 Seema Srivastava vs. ITO
[2025] 175 taxmann.com 374 (Patna – Trib.)]
A.Y.: 2017-18 Date of Order : 6.6.2025
Sections : 54, 54F
Where assessee is otherwise eligible to claim deduction and has submitted computation, mere typographical error in claiming deduction under section 54 instead of section 54F does not disentitle the assessee from getting relief under section 54F. Limitation of allowing deduction only if claimed in the return of income applies only to the AO and not to the Appellate Authority which can allow correct claim if facts on record support the claim being made.
FACTS
During the previous year relevant to the assessment year under consideration, the assessee in her return of income declared capital gains arising on sale of immovable property and claimed deduction under section 54. During the course of assessment proceedings, the Assessing Officer (AO) disallowed the claim of deduction made under section 54 on the ground that the asset sold was not a residential house. Although section 54F could have applied, the AO held that assessee had not claimed deduction under section 54F nor submitted the requisite details.
Aggrieved, assessee preferred an appeal to the CIT(A) and contended that she was eligible to claim deduction under section 54F but had inadvertently claimed it under section 54 and this was a clerical error which should have be
