Claim for deduction, made in belated return filed under section 139(4), of capital gains under sections 54F and 54EC, not liable to penalty under section 271(1)(c).

48. TS-720-ITAT-2025 (Ahd.)

Tejas Ghanshyambhai Patel vs. ITO

A.Y.: 2016-17 Date of Order : 4.6.2025

Section: 271(1)(c)

Claim for deduction, made in belated return filed under section 139(4), of capital gains under sections 54F and 54EC, not liable to penalty under section 271(1)(c).

FACTS

The assessee, an individual, co-owner of immovable property, sold his interest in the property for a consideration of ₹1.80 crore and claimed deduction under section 54EC of ₹50,00,000 and deduction under section 54F of ₹36,27,254. The Assessing Officer (AO) denied the claim of deductions under section 54F and 54EC on the ground that the return of income was filed belatedly and also the return was revised belatedly. The AO completed the assessment by making an addition of ₹86,27,254 and demanded tax thereon.

Aggrieved, the assessee preferred an appeal against the assessment which appeal was partly allowed. The AO thereafter proceeded with penalty proceedings and levied a penalty of ₹1,70,414.

Aggrieved by the levy of penalty, the assessee preferred an appeal