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2020 (11) TMI 346 - HC - Income TaxEntitled to deduction u/s 54G - Short term capital gain - contemporaneous notification No.9447 dated 6.1.1994 - Whether the tribunal was right in classifying Bangalore as a non-urban area for the purposes of Section 54G when it was previously categorized as an urban area until 1990? - Whether the tribunal was right in finding that an urban area such as Bangalore could be classified as a non-urban area for the purpose of Section 54G from 1990 and then once again be classified as an urban area from 27.04.2006? HELD THAT:- Explanation to Section 54G(1) of the Act expressly provides that having regard to population, concentration of industries need for proper planning of the area and other factors, the Central Government may by general or special order declare to be an area to be urban area for the purposes of sub-Section (1) of Section 54G of the Act. In exercise of powers under the aforesaid provision, the Central Government has issued a Notification dated 27.04.2006 and has declared Anekal where the factory of the assessee is situated to be an urban area for the purposes of sub-Section (1) of Section 54G of the Act. However, from perusal of the Notification no inference can be drawn that the same has any retrospective operation. The Notification comes into force on the date of its publication in the Official Gazette. Section 280ZA of the Act was omitted by Finance Act, 1987 with effect from 01.04.1988. The Central Board of Direct Taxes (CBDT) has issued a Notification under Section 280Y(d) vide Notification dated 22.09.1967, by which Bangalore Corporation is declared as urban area for the purposes of Chapter XXIIB of the Act. However, the aforesaid Notification is applicable for Tax Credit Certificates for shifting of industrial undertakings from urban areas under Section 280YD read with Section 280ZA of the Act and therefore, the same cannot be held applicable for exemption under Section 54G of the Act. Decided against the assessee and in favour of the revenue
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