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2020 (2) TMI 1686 - ITAT KOLKATARevision u/s 263 - Eligibility of deduction u/s 54EC - HELD THAT:- There is no dispute between the parties about the two dates each of receipt of sale consideration of painting(s) followed by reinvestment in REC bonds. The assessee’s reinvestment falls within six months from the date of transfer. He is entitled for the impugned section 54EC deduction. We make it clear that the legislature has amended section 54EC by inserting 2nd proviso to sub-section(1) of the Act by the Finance Act 2014 w.e.f. 01.04.15 restricting the reinvestment amount to a lumpsum of Rs.50,00,000/-; even if it involves more than one financial year, w.e.f 01.04.15 only without having retrospective effect. We wish to reiterate here that we are dealing with assessment year 2014-15. It emerges from the case records that the learned special bench had came across the concerned assessee’s date of receipt of sale consideration as 10.06.08 and reinvestment of the corresponding capital gains on 17.12.08 only. We therefore adopt the reasoning Alkaben B. Patel [2014 (3) TMI 842 - ITAT AHMEDABAD] mutatis mutandis and hold that the assessee’s impugned reinvestment dated 28.04.14 after receiving final amount of consideration on 01.11.13 as very well beyond six months and therefore, he is entitled for the impugned section 54EC deduction. PCIT’s impugned revision action in the above-narrated facts and circumstances is not sustainable since the Assessing Officer’s alleged failure in either or not examining the case or disallowing the above-stated deduction relief has not caused any prejudice to interest of the Revenue. His assumption of section 263 revision jurisdiction stands reversed therefore. AO’s regular assessment herein stands revived as a necessary corollary. Coming to remaining eight assessees’ cases both the learned representatives are ad idem that the same also involve identical facts since they had received the sale consideration of painting(s) on more than one occasion containing different dates followed by reinvestment thereof in REC bonds on similar two dates only. More particularly qua the latter one being beyond a period of six months from the date of transfer of the relevant capital asset(s). PCIT’s revision direction in these eight cases are also stood reversed therefore.
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