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TMI Blog2016 (6) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... ried to make a distinction of provisions for restricting investment of ₹ 50,00,000/- only in one financial year. The assessee has invested in two installments falling in two financial years and availed tax exemption. Amendment of provisions of Sec.54EC in Finance Act, 2014 are prospective and apply from 01.04.2015 effective from assessment year 2015-16 onwards. Thus we direct the Assessing Officer to delete the addition and allow the grounds in favour of the assessee. - I.T.A. No.2274/Mds/2015 - - - Dated:- 27-4-2016 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER For The Appellant : Shri. A. Mahesh, C.A. For The Respondent : Shri. A.V. Sreekanth, IRS, JCIT. ORDER PER G. PAVAN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act and investments are made within a period of six months from the date of transfer of the asset and relied on the Tribunal decisions of Coromandel Industries (P) Ltd vs. ACIT, Company Circle I(3), Chennai 36 taxmann.6 (Chennai) and Smt. Sriram Indubal vs. ITO 32 taxmann.com 118 (Chennai) as under:- The ITAT has held that the first condition mentioned in section 54EC(1) is that the investment has to be made within a period of six months from the date of transfer of capital asset. Said proviso mentions that investment on which an assessee could claim exemption under section 54EC(1) shall not exceed Rs. .50 lakhs during a financial year. So the exemption provision has to be construed not transaction wise but, financial year w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m specified asset Is not less than the capital gain arising from the transfer of the original asset, the whole of such capital gain shall not be charged under section 45; (b) If the cost of the long-term specified asset is less than the capital gain arising from the transfer of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of acquisition of the long term specified asset bears to the whole of the capital gain, shall not be charged under section 45 . The ld. Assessing Officer based on the action of Department in filing an appeal in High Court, disallowed exemption of ₹ 50,00,000/- and assessed total income of Rs. .1,45,07,369/- and raised demand. Agg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eals) has expressed their own opinion in interpreting the definition and the dictionary meaning of any in the provisions further Assessing Officer suo-motu took the decision by distinguishing judicial decision and restricted ₹ 50,00,000/- is for one financial year only and excess claim was disallowed. The provisions of Sec. 54EC of the Act are beneficial provision and to be construed liberally. The investment by the assessee in Sec. 54EC Bonds within the period of six months from date of sale of property is as per law and supported the submissions with the jurisdictional High Court decisions and prayed for allowing the appeal. 6. Contra, the ld. Departmental Representative relied on the orders of the lower authorities, CBDT cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd confusion on interpreting the provisions as the Commissioner of Income Tax (Appeals) examined the issue on the interpreting the word any referring to dictionary meaning because there was no certainty was visualized considering the provisions, CBDT circulars and facts of the case. The Assessing Officer tried to make a distinction of provisions for restricting investment of ₹ 50,00,000/- only in one financial year. The assessee has invested in two installments falling in two financial years and availed tax exemption. Amendment of provisions of Sec.54EC in Finance Act, 2014 are prospective and apply from 01.04.2015 effective from assessment year 2015-16 onwards. We considering the facts and amendment of provisions rely on the juri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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