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2016 (9) TMI 1421 - AT - Income TaxDeduction u/s 54EC - time limit for investment in six months - Held that:- Section 54EC(1) of the Act restricts the time limit for the period of investment after the property has been sold to six months. There is no cap on the investment to be made in bonds. The first proviso to section 54EC(1) of the Act, specifies the quantum of investment and it states that the investment so made on or after 01/04/2007 in the long term specified asset, by an assessee, during any Financial Year does not exceed fifty lakhs rupees. Prior to amendment, the time limit of ₹ 50 lakhs as prescribed u/s 54EC of the Act is per year and if the assessee invest ₹ 50 lakh each in two different years, otherwise fulfilling other conditions of section 54EC, such appellant will be entitle to the benefit of ₹ 1 crore and not merely ₹ 50 lakhs. In the case of the assessee, the capital gains arose on account of two distinct capital asset, arising from two distinct and separate agreements, one vide agreement dated 28/04/2008 and another vide agreement dated 14/10/2008, therefore, there are two separate computation of capital gains, for each assets. The assessee while computing capital gains has sought reinvestment benefit by investing, in the bonds prescribe u/s 54EC on 30/09/2008 against capital gain on 28/04/2008 and on 09/04/2009 against capital gain on 14/10/2008, therefore, the case of the assessee is clear, consequently, in view of the foregoing decision this ground of the assessee, in both appeals, is allowed.
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