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2019 (3) TMI 729 - ITAT MUMBAIPenalty u/s 271(1)(c) - bonafide belief - Taxability of capital gain arises on sale of land - claim of deduction u/s 54F against the capital gain - HELD THAT:- As not in dispute that on sale of land to the developer, the assessee has not received any monetary consideration. Rather, as per agreement with the developer, the assessee was to receive constructed area in lieu of the land sold. Therefore, the explanation of the assessee that in absence of any monetary consideration she was under a bonafide belief that no capital gain arises on sale of land, is acceptable and benefit of doubt can be given to the assessee. Also in Gumanmal Jain [2017 (3) TMI 394 - MADRAS HIGH COURT] held that if under a development agreement the assessee receives several flats constructed on the same piece of land, the assessee would be eligible to avail deduction under section 54F of the Act. Thus, as per the ratio laid down in the aforesaid decision, the assessee would have been eligible to claim deduction under section 54F of the Act against the capital gain. Therefore, merely because the assessee agreed for the addition of capital gain, the provisions of section 271(1)(c) of the Act do not get attracted automatically. - decided in favour of assessee
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