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2020 (2) TMI 773 - ITAT KOLKATARevision u/s 263 - exemption under section 54EC - terminology of “Month” in the context of provisions of section 54EC - HELD THAT:- the term “Month” means calendar month (and not period of thirty days), which should be applied for the purpose of section 54EC of the Act. It is not in dispute that assessee had deposited the capital gain amount arising from sale of two properties in Rural Electrification Corporation Ltd, Bond as per the scheme of the Government. The investment in the REC Bond was made by assessee on 30.08.2011. The sale deed was entered into by the assessee on 15.2.2011. The six calendar months from the date of sale deed would complete on 31.08.2011. The assessee made investment under section 54EC of the Act on 30.08.2011 which is within the completion of six months. Therefore, we note that there is no violation of the provisions of section 54 EC of the Act, as the assessing officer has rightly allowed the benefit of section 54EC of the Act to the assessee. Hence, order passed by assessing officer is not erroneous. Therefore, we quash the order under section 263 of the Act, passed by ld PCIT. We note that ld PCIT further observed from the record that exemption u/s 54EC of the Act was allowed twice for an amount of ₹ 3,90,000/- so, the total amount to be disallowed will be ₹ 25,80,000/- (₹ 21,90,000 + ₹ 3,90,000). We note that this may be a mistake apparent from record, and therefore the same can be rectified under section 154 of the Act. Therefore, we direct the assessing officer to examine the amount of ₹ 3,90,000/- and if it was allowed twice, the same may be disallowed and exemption should be granted under section 54EC of the Act in accordance to law. Appeal of the assessee is allowed.
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