In 2017, Mr Babulal from N.S. Road Vile Parle, Mumbai, sold three plots of land for Rs 5.03 crore and claimed income tax exemption under Section 54 for his long-term capital gains (profit) of Rs 3.68 crore. However, two of his actions drew scrutiny from the Income Tax Department, leading to a legal dispute that stretched for more than four years.
First, Babulal missed the original income tax return (ITR) due date for the assessment year (AY) 2018-19. Even after the government extended the deadline to October 31, 2018, Babulal filed his ITR (belated) much later—on December 28, 2018.
