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TMI Blog2017 (11) TMI 2046X X X X Extracts X X X X X X X X Extracts X X X X ..... en reinvested to the tune of Rs.50lacs each in a time span of two separate assessment years, in proceedings u/s. 143(3) of the Income Tax Act, 1961; in short "the Act". 2. Case called twice. None appears at assessee's behest. Case file reveals that the registry has already sent an RPAD notice to the assessee dated 04.10.2017. He is accordingly proceeded ex parte. 3. It emerges from the instant case file that there is no dispute between the parties about the fact that assessee had disclosed long term capital gains of Rs. 1,60,83,089/- to be arising from surrender of tenancy right as well as sale of shares in a Private Limited Company, received through gift. This followed Section 54EC deduction claim to the tune of Rs.1 crore i.e. Rs.50 lac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that no subscription for eligible investment was available to the assessee from 1st April, 2008 to 26-05-2008. 8 While going through the proviso of section 54EC, we find that the proviso to section reads as under:- "[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 rupee]" It is clear from this proviso that where assessee transfers his capital asset after 30th September of the financial year he gets an opportunity to make an investment of Rs.50 lakhs each in two different financial years and is able to claim exemption upto Rs. 1 Crore u/s 54EC of the Act. Since the language of the proviso is clear and unamb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spread over in two financial years falling within 6 months is very much allowable as deduction claim u/s.54 EC of the Act. Hon'ble Madras high court's judgment in CIT vs. C. Jaichander & other connected case Tax Case Appeals 419 & 533 of 2014 decided on 15.09.2014 also adopts a similar reasoning that there is no bar as propagated at Revenue's behest in allowing such a deduction claim. Their lordships further take into account amendment in Section 54EC (1) by insertion of second proviso w.e.f. 01.04.2015 alongwith relevant explanatory memorandum to conclude that the amendment effect restricting the deduction amount to Rs.50 lacs only in any case would apply w.e.f. 01.04.2015 in relation to assessment year 2015-16. We reiterate that we are i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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