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2018 (2) TMI 713 - AT - Income TaxEligibility for deduction u/s 54E - investment made of ₹ 50 lakhs each of different two Financial Years within a period of six months - Held that:- Prior to amendment, the time limit of ₹ 50 lakhs as prescribed u/s 54EC is per year and if the assessee invest ₹ 50 lakh each in two different years, otherwise fulfilling other conditions of section 54EC, thus assessee will be entitle to the benefit of ₹ 1 crore and not merely ₹ 50 lakhs. Thus, the limit of ₹ 50 lakh under the first proviso is not per assessee but per Financial Year. So far as, the amendment made by the Finance Act, 2014 is w.e.f. 01/04/2015 i.e. Assessment Year 2015-16 onwards and cannot be held to be retrospective. Thus, we hold that the assessee is entitle to deduction u/s 54EC as claimed by him and does not restrict the addition as has been done by the Assessing Officer - Decided in favour of assessee Disallowing of non-qualifying expenditure u/s 48 - Held that:- Before this Tribunal, claimed that the amount was paid through banking channel and thus so far as payment is concerned there is no dispute. We have also perused the observation made in para 5.1.1 of the impugned order. Considering the totality of facts and the assertion made by the assessee, we are of the view that the whole issue needs reexamination by the AO, afresh. AO is directed to examine the claim of the assessee for which due opportunity of being heard be provided and the true facts may be brought on record. AO is to also to examine the fact and the clauses mentioned in client agreement dated 27/05/2008 (alongwith the scope of work and other attendant facts) between Devidayal Sales Ltd. and Avandus Capital Pvt. Ltd. and genuineness of payment claimed to be made by the assessee. The assessee is also directed to furnish necessary evidence to substantiate the claim, thus, this appeal of the assessee is allowed for statistical purposes.
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