2011 (1) TMI 89 - DELHI HIGH COURT

Re-assessment proceedings under section 147(a) - compulsory acquisition - Long-Term Capital Gains - purchase price of the acquired land as the appellant company made a claim for higher compensation – Assessee claimed exemption under section 54E - Assessing Officer, held that the assessee company was not entitled to the benefit of exemption under section 54E as it was inserted by the Finance Act, 1979 w.e.f. 1-4-1979 - appellant has made the relevant disclosure in the returns for the relevant assessment year when the enhanced compensation was received - amount was invested by the appellant in Bonds, which entitles him to certain benefits in view of the provisions of section 54E of the IT Act - benefit is available to the appellant for that year in question, which may not have been available for the assessment year 1965-66, cannot be a reason for the assessing authority to reopen the assessment for the year 1965-66 - order of the Tribunal not sustainable and accordingly set aside