https://www.taxtmi.com/caselaws?id=461415 ITAT Ahmedabad allowed rectification application under section 254 regarding penalty under section 271(1)(c) for disallowance of capital gains exemption under sections 54F and 54EC. The assessee had invested Rs.30 lakhs in property within stipulated period, making them eligible for exemption to that extent. ITAT had previously allowed Rs.30 lakhs exemption in quantum proceedings but confirmed penalty on the same addition in penalty proceedings. The tribunal found this constituted a mistake apparent from record, as penalty cannot be levied on additions that were deleted in quantum proceedings. The rectification application was allowed, recognizing that penalizing an assessee for an offence found not committed is impermissible in law. en-us Thu, 27 Jun 2024 00:00:00 +0530 Fri, 04 Apr 2025 20:59:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461415 ITAT Ahmedabad allowed rectification application under section 254 regarding penalty under section 271(1)(c) for disallowance of capital gains exemption under sections 54F and 54EC. The assessee had invested Rs.30 lakhs in property within stipulated period, making them eligible for exemption to that extent. ITAT had previously allowed Rs.30 lakhs exemption in quantum proceedings but confirmed penalty on the same addition in penalty proceedings. The tribunal found this constituted a mistake apparent from record, as penalty cannot be levied on additions that were deleted in quantum proceedings. The rectification application was allowed, recognizing that penalizing an assessee for an offence found not committed is impermissible in law. Case-Laws Income Tax Thu, 27 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461415