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2013 (7) TMI 948 - AT - Income TaxApplicability of provisions of Sec. 50C - Held that:- In the interest of justice and fair play, we restore this issue back to the files of the AO. The AO is directed to verify whether the impugned land was a leasehold land in the hands of the assessee and what has been transferred is only leasehold rights. The assessee is directed to file all necessary related documents/evidences before the AO. The AO is expected to give a reasonable opportunity of being heard to the assessee. If the AO is convinced that what has been transferred is a leasehold right, then the issue is to be decided in the light of the decision of the Tribunal in the case of Atul G. Puranik (2011 (5) TMI 576 - ITAT, Mumbai ). Disallowance of exemption claimed by the assessee u/s. 54EC - Held that:- The claim has been denied because the assessee has invested in the REC Bonds beyond the period of limitation prescribed under the said section. It is the say of the Ld. Counsel that such Bonds were not available during the period of limitation, therefore, the assessee could not have purchased the Bonds within the specified period. Therefore, we restore this issue also back to the files of the AO. The AO is directed to verify whether REC bonds were available during the period of limitation and if the Bonds were not available, then the assessee cannot be penalized for doing something impossible to perform because REC Bonds are Government Bonds and if they are not available in the market, the Revenue cannot expect the assessee to fulfill the conditions of Sec. 54EC of the Act.
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