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TMI Blog2015 (10) TMI 1421X X X X Extracts X X X X X X X X Extracts X X X X ..... s was converted into sale consideration which is also evident from the sale deed placed on record. Whether the assessee is entitled for deduction u/s. 54F of the Act on this conversion of loan into sale consideration is definitely a highly debatable issue, therefore, in our considered opinion, penalty cannot be levied u/s. 271(1)(c) of the Act in respect of the claim of ₹ 12.75 lakhs. In so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that the Ld. CIT(A) erred in upholding the levy of penalty made u/s. 271(1)(c) of the Act. 3. The roots for the levy of penalty lie in the assessment order dt. 21.12.2011 Made u/s. 143(3) of the Act wherein the Assessing Officer noticed that the assessee has made Long Term Capital gain from which it has claimed exemption u/s. 54F of the Act. After carefully perusing the details, the AO allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the submissions made by the assessee and proceeded by levying minimum penalty of ₹ 2,55,535/- u/s. 271(1)(c) of the Act. 4. The assessee carried the matter before the Ld. CIT(A) but without any success. 5. Before us, the Ld. Counsel for the assessee vehemently stated that u/s. 54F of the Act the stipulation is in relation to the purchase of property before one year of the sale, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate authority. 7. We have carefully perused the orders of the authorities below. We have also gone through the assessment order. It is an undisputed fact that the assessee has tendered loan to the builder much earlier to the date of purchase. It is also an undisputed fact that the loan amount of ₹ 12.75 lakhs was converted into sale consideration which is also evident from the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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