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TMI Blog2015 (3) TMI 1379X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of Section 54EC(1) and the first proviso, it is clear that the time limit for investment is six months from the date of transfer and even if such investment falls under two financial years, the benefit claimed by the assessee cannot be denied. It would have made a difference, if the restriction on the investment in bonds to ₹ 50,00,000/- is incorporated in Section 54EC(1) of the Act itself. However, the ambiguity has been removed by the legislature with effect from 1.4.2015 in relation to the assessment year 2015-16 and the subsequent years. For the foregoing reasons, we find no infirmity in the orders passed by the Tribunal warranting interference by this Court. The substantial questions of law are answered against the Revenue an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to him, the second investment was for a different financial year. He thus restricted the claim of the assessee to ₹ 50,00,000/- and recomputed the long-term capital gains at ₹ 2,95,37,014/-. 3. Aggrieved, assessee moved in appeal before the CIT(A), who held in favour of the assessee relying on an order of this Tribunal in the case of Vivek Jairazbhoy vs. DCIT (ITA No.236/Bang/2012 dated 14/12/2012). 4. Now before us, ld. DR submitted that investments made in two years when aggregated exceeded the limit of ₹ 50 lakhs set out in the section and therefore assessee ought not to have been given the relief. Per contra, ld. AR submitted that the Hon ble Madras High Court in the case of CIT vs. Coromandel Industries Ltd. (2014) 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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: Provided that the investment made on or after the 1st day of April, 2007 in the long-term specified asset by an assessee during any financial year does not exceed fifty lakh rupees. 7. On a plain reading of the above said provision, we are of the view that Section 54EC(1) of the Act restricts the time limit for the period of investment after the property has been sold to six month ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Act relating to capital gain not to be charged on investment in certain bonds. The existing provisions contained in sub-section (1) of section 54EC provide that where capital gain arises from the transfer of a long-term capital asset and the assessee has within a period of six months invested the whole or part of capital gains in the long-term specified asset, the proportionate capital gains so invested in the long-term specified asset out of total capital gain shall not be charged to tax. The proviso to the said sub-section provides that the investment made in the longterm specified asset during any financial year shall not exceed fifty lakh rupees. It is proposed to insert a proviso below first proviso in said subsection (1) so as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of one crore rupees as against the intended limit for relief of fifty lakhs rupees. Accordingly, it is proposed to insert a proviso in sub-section (1) so as to provide that the investment made by an assessee in the long-term specified asset, out of capital gains arising from transfer of one or more original asset, during the financial year in which the original asset or assets are transferred and in the subsequent financial year does not exceed fifty lakh rupees. This amendment will take effect from 1 st April, 2015 and will, accordingly, apply in relation to assessment year 2015-16 and subsequent assessment years. 10. The legislature has chosen to remove the ambiguity in the proviso to Section 54EC(1) of the Act by inserting a second prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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