ITAT Patna Grants Tax Relief on Rs 4.5 Crore Property Sale Despite Filing Error

The ITAT Patna has granted tax relief to an individual who sold a property for ₹4.5 crore, despite a filing error. The taxpayer, who sold land, had mistakenly claimed a tax exemption under Section 54 instead of the correct provision, Section 54F. The tax officer had denied the claim on a technicality. The tribunal ruled in favor of the taxpayer, citing a CBDT circular that instructs tax authorities to act in a fair and facilitative manner and not deprive taxpayers of legitimate relief due to ignorance or technical errors. The ITAT has remitted the matter back to the tax officer to allow the correct deduction.