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TMI Blog2012 (9) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee and there is no further condition that the funds should be given out of capital gain. Otherwise also once money is deposited in the bank account it gets merged with other funds of the assessee and it is impossible to locate which funds have been used for purchase of specified assets because the normal businessman would keep on doing various transactions in the bank account. Deduction allowed - Decided in favor of assessee - ITA No. 688 & 689/Chd/2011 - - - Dated:- 27-6-2012 - SHRI T.R. SOOD, AND Ms. SUSHMA CHOWLA, JJ. Appellant by: Shri Manjit Singh Assessee by: Shri T.S. Sethi ORDER PER T.R. SOOD, A.M ITA No. 688/Chd/2011 - Tapvir Singh In this appeal the revenue has raised the following ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer was of the opinion that since the funds invested in purchase of REC bonds were not out of capital gain, therefore, he issued a show cause notice that why exemption u/s 54EC should not be denied. In response the assessee placed reliance on the decision of Hon'ble Madras High Court in the case of CIT V. 305 ITR 371, CIT V. Late N. Kasi Viswanathan. In this case the assessee has made investment prior to receiving the compensation for sale of land and it was held that Section 54EC does not prevent the assessee for making investment out of available funds even before the enhanced compensation is received. However, the Assessing Officer did not find merit in these submissions, therefore, according to the Assessing Officer the funds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank account. Therefore, we find nothing wrong with the order of the ld. CIT(A) and confirm the same. 7. In the result, appeal filed by the revenue is dismissed. 8. ITA No. 689/Chd/2011 - Japvir Singh 9. Ground No. 1 - The facts in this case are identical. The Assessing Officer has disallowed deduction u/s 54 EC because the amount invested in REC bonds is not out of the sale consideration. This issue has already been adjudicated by us in ITA No. 688/Chd/2011 in above noted paras and following the decision we decide this issue against the Revenue. 10. Ground No. 2 - After hearing both the parties we find that during assessment proceedings the Assessing Officer noticed that one of the cheque for sale of property should have been for Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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