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MUMBAI: In a peculiar case handled by the Revenue-tax Appellate Tribunal (ITAT), Mumbai bench, a taxpayer Mukesh Harilal Mehta had claimed part 54 deduction in his Revenue-tax (I-T) return for the monetary 12 months 2014-15. The tax tribunal held that this declare can’t be denied owing to a mistake dedicated by the builder in allocating the flat. The builder had erroneously allotted the flat bought by him to a different purchaser, however accepted this error and allotted a equally positioned flat in the identical constructing to Mehta.Part 54 of the I-T Act gives that any long run capital achieve arising to a person on sale of a residential property shall be exempt to the extent that such capital achieve is invested within the buy of one other residential property inside one 12 months earlier than or two years after such sale.Or the brand new residential property might be constructed inside three years from the date of sale of the unique property.These situations have been met by Mehta. Nonetheless, the I-T officer throughout evaluation denied this declare as there was no registered sale deed evidencing the acquisition of the brand new flat. Additional, the main points of the brand new flat talked about within the possession letter have been completely different from the flat in direction of which the fee had been made.The ITAT held that the denial of exemption is unjustified as he can’t be penalized for a mistake dedicated by the builder in allocating the flat.

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