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2013 (6) TMI 726 - AT - Income TaxValidity of claim of Long Term Capital Gains (LTCG) u/s.54EC - Revenue has denied the said claim on the ground that the investment in the National Highway Authority of India (NHAI) bonds stood made beyond six months of the date of transfer, i.e., the period specified under the relevant provision, so that the assessee’s claim is not maintainable in law - Held that:- As the Revenue considers the actual outflow of funds as the relevant date of investment (in specified asset u/s.54EC), it must, on the principle of parity, also take the date of receipt of consideration, allowing a time lag of two to three working days, i.e., as in the normal course of banking business, for the same (receipt). As such, the relevant date would be upon allowing the normative time required for the realization of funds through the banking channel. We draw support or this proposition from s.27 of the General Clauses Act, 1897. The date of the agreement being 29.02.2008, i.e., the last date of the month of February, the date of receipt would - in the ordinary and regular course - fall some time in the first week of March, 2008, i.e., even if we do not consider the date of the actual receipt as being date of receipt in the normal course, being sans any details in the matter by the assessee and, thus, not relevant. The second component of the controversy stands determined by the co-ordinate Bench of the tribunal in the case of Yahya E. Dhariwala (2011 (11) TMI 381 - ITAT MUMBAI) wherein, being guided by the fact that the provision of section 54EC is a beneficial provision, it sought to grant the benefit of doubt with regard to the word ‘month’ occurring in the provision, by construing it as a calendar month; the word being undefined. A period of six clear months from the first week of March, 2008, would, therefore, end only 30.09.2008, i.e., the date of allotment of the NHAI bonds. - Decided in favour of assessee
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