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TMI Blog2007 (5) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... acts and in the circumstances of the case, the Tribunal was justified in allowing the assessee deduction under section 54E read with section 54H of the Income-tax Act, 1961, for purchase of capital gains units for Rs. 88,053 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the order of the Commissioner of Income-tax (Appeals) dated December 30, 1992, directing the Assessing Officer to allow the assessee deduction under section 54B read with section 54H on account of the agricultural land purchased up to December 31, 1991, for Rs. 6,80,808 whereas deduction under section 54B has been erroneously considered and allowed by the Assessing Officer to the extent of Rs. 3,74,960 in his set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... V. K. Rastogi, learned counsel for the respondent-assessee. 6 Learned counsel for the Revenue submitted that section 54E of the Act was brought on the statute book by the Finance (No. 2) Act, 1977, with effect from April 1, 1978. Its benefit could not have been extended in respect of capital gains which arose during the assessment year 1977-78. He further submitted that the Tribunal erred in law in granting the benefits of the aforesaid provisions. 7 Shri V. K. Rastogi, learned counsel on the other hand, submitted that the respondent has received initial compensation only on September 5, 1984, and, therefore, capital gains, if any, arose during the previous year, relevant to the assessment year 1985-86. The respondents having invest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 87, by substituting clauses (iii), (iiia) and (iiib) in place the old clause (iii) with effect from April 1, 1988, was intended to supply an obvious omission or to clear up doubts as to the meaning of the word "owner" in section 22 of the Act. These amendments are clarificatory in nature and has to be given retrospective operation. The same principle is applicable in this case also. As we have already come to the conclusion that sub-section (5) of section 45 is to be given retrospective effect the necessary consequences which would follow is that the amount of compensation having been received in the previous year relevant to the assessment year 1985-86 could not have been treated as capital gains during the assessment year 1976-77. It is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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