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2022 (7) TMI 122

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..... investment can be made as a whole or in part of the capital gains.We are in concurrence with the determination made by the ld. Commissioner that as per section 54EC of the Act, the time period of investment starts from the date of transfer and not from the date of receipt of consideration. Coming to the period of six months calculation, Hon ble Coordinate Benches of the Mumbai Tribunal in the case of Neela S. Karyakarte vs. ITO ( 2015 (12) TMI 618 - ITAT MUMBAI] , Aquatech Engineers [ 2013 (6) TMI 726 - ITAT MUMBAI] and Niamat Mahroof Virji 2016 (12) TMI 1081 - ITAT MUMBAI] dealt with the definition of six months as prescribed u/s. 54EC of the Act and clearly held that six months have to be interpreted as six calendar months and n .....

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..... sessment year 2014-15. 2. Brief facts, relevant for adjudication of this appeal are that the Assessee by executing a sale deed dated 15.10.2013, jointly sold a piece of land on dated 15.10.2013 and received consideration in two parts i.e. Rs.42.93lacs on 02.08.2013 and Rs.95.84 lacs on 15.04.2014. For availing exemption u/s. 54EC of the Act, the Assessee made an application for NHAI bonds of Rs.50 lacson dated 29.04.2014 and consequently, got allotted the bonds to the tune of Rs.50 lacs on dated 30.04.2014 and accordingly claimed exemption u/s. 54EC of the Act qua amount of Rs. 50,00,000/-. 2.1 The Assessee, on being asked by the Assessing Officer, claimed before the Assessing Officer that the Assessee had sold the land in the mon .....

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..... ubmissions of the Ld. AR. All the grounds of appeal relate to the dispute arising out of perceived delay on part of the appellant in depositing the sale consideration of the property sold u/s 54EC of the IT Act, 1961, as held by AO in his assessment order dated 21.12.2016. Briefly the facts are the appellant sold his share of property on 15.10.2013 and his share was Rs. 1,38,78,150/- out of which he apparently purchased NHAI bonds on, as per the details submitted on 29.04.2014. The AO has calculated six months from the date of transfer in accordance with actual calculation starting from 16.10.2013 (date of transfer being 15.10.2013) and the period of six months ends on 14.04.2014. Since, the NHAI Bonds of purchase on 29.04.2014, h .....

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..... r, from which the period of six months is to be calculated for availing the benefit of section 54EC of the Act. The clarity of construction regarding said date is intended by the Legislature by itself points to the precise nature of the provision under section54EC of the Income Tax Act. This clear date of transfer of the asset is therefore quite clear and known to the appellant who is intending to take benefit of section 54EC of the IT Act, 1961. The intended purport of this clarity defines the precise nature and meaning of the provision under the said section 54EC of the I.T. Act,1961. Likewise, the time period of six months has to be calculated in terms of words used by the legislature in the said section which opens the window of tax rel .....

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..... to be made in totality, but not in pieces and time for investment start from the date of final payment. Because the Assessee did not receive the amount more than Rs.50 lacs in first part and therefore, was unable to invest as per terms of section 54EC of the Act. The Assessee further claimed that the Assessee had received substantive amount of Rs.95.84 lacs only on dated 15.04.2014 and thereafter immediately applied and got allotted the bonds u/s. 54EC of the Act on 29.04.2014 and 30.04.2014 respectively and therefore the claim of the Assessee is maintainable being invested within the time prescribed in law. We are not impressed by said claim of the Assessee, as there is no such bar prescribed under section 54EC of the Act. The provisions .....

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