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TMI Blog1984 (3) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... s paid on signing of the agreement and balance amount of Rs. 1,62,000 would be paid within one year in 10 equal instalments from the date of his agreement. The assessee has deposited the consideration with Natpur Co-operative Bank Ltd., Nadiad and United Mercantile Co-op. Nadiad. According to the ITO, the assessee had not invested these deposits within time limit of 6 months after the date of transfer. According to the ITO the period expires on 11th Nov., 1978. The assessee has received Rs. 12,990, Rs. 16,200 and Rs. 16,200 aggregating to Rs. 61,599 from Shah Construction Co. Ltd. upto 11th Nov., 1978 and she has thus not invested the entire consideration of Rs. 1,57,094 in fixed deposits within the statutory period. The claim of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in fixed deposits within 6 months from the date of transfer the assessee is not entitled for relief. 3. We have heard the rival submissions and considered the material on record. The fact is not in dispute that the assessee has entered into agreement with M/s Shah Construction Co. and relinquished her rights and share in the port trust plot No. 6 situated at Seweree Port and under the agreement the assessee received Rs. 12,999 on the date of signature and balance Rs. 1,62,000 she was to receive in 10 equal instalments. In consequence of this agreement according to the assessee, the assessee received the amount of consideration on the following dates by cheque and demand draft as under: Rs. 12,999.00 12-5-1978 Ch. No. 444391 Rs. 16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital asset, not being a short-term capital asset, (the capital asset to transferred being hereafter in this section referred to as the original asset), and the assessee has, within a period of six months after the date of such transfer, invested or deposited the whole or any part of the net consideration in any specified asset (such specified asset being hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,—" Now, on the above facts can it be said that the assessee is entitled for benefit of s. 54E. The requirement of s. 54E is that if the assessee has invested or deposited the whole or any part of net consideration in an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the agreement the assessee was to receive the consideration in instalments and till she received the instalment it cannot be said that the transfer was final. It is only the date when the assessee received the instalment under the agreement which should be taken as the date for period of 6 months and any amount deposited within 6 months from the dates of receipts should be allowed and benefit of s. 54E should be given to the assessee. Accordingly, we set aside the order of the CIT(A) and remit the matter back to the ITO to ascertain the exact date of receipt and date of deposits of the receipts in the banks and allow the benefit of s. 54E if the deposits are made within 6 months from the date of receipt of consideration under the agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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