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75. [2025] 126 ITR(T) 172 (Delhi - Trib.)
DCIT vs. Sahil Vachani
ITA NO.: 2604 (DEL) OF 2023
A.Y.: 2016-17
DATE: 23.06.2025
Section 271(1)(c) read with section 54F – Penalty – Wrong claim of exemption – Bona fide explanation due to builder’s default
FACTS
The assessee sold shares during the relevant previous year and earned long-term capital gains of ₹9.01 crore. In the return of income, the assessee claimed exemption of ₹6.31 crore under section 54F, contending that he had invested the sale consideration in a residential property.
During assessment proceedings, the Assessing Officer noted that although the assessee had entered into an agreement and made substantial payments towards the proposed residential property, the new residential house did not come into existence within the time prescribed under section 54F. The assessee accepted the disallowance of exemption and offered the amount to tax.
The Assessing Officer, thereafter, levied penalty under section 271(1)(c) on the ground that
