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2012 (4) TMI 195 - AT - Income TaxDeduction u/s 54EC – LTCG - sale of residential property on 22.10.2007 - deduction u/s 54EC allowed in respect of investment of ₹ 50 lacs made in REC bonds on 31.12.2007 - denial of deduction in respect of investment of ₹ 50 lacs in NHAI bonds made on 26.05.2008 on ground of it being made beyond the prescribed time of 6 months – assessee contended that subscription to the eligible investment was closed during the period 01-04-2008 to 26-05-2008 - investment of more than ₹ 50 lacs cannot be made in one F.Y. – Held that:- Proviso to Section 54EC restricts investment of more than ₹ 50 lacs in a F.Y.. However, if assessee transfers his capital asset after 30th September of the F.Y. he gets an opportunity to make an investment of ₹ 50 lakhs each in two different F.Ys. In present case, assessee could have invested in eligible investment within six months (on or before 21-04-2008) involving two financial years. Therefore, assessee is entitled to get exemption upto ₹ 1 Crore if investment is made upto 21.04.2008. Further investment of ₹ 50 lacs is made by assessee on 26.05.2008. It is undisputed that subscription to the eligible investment was closed during the period 01-04-2008 to 26-05-2008 thus assessee was prevented by sufficient cause which was beyond his control in making investment in these Bonds within the time prescribed. Therefore, investments made by the assessee on 26-05-2008 even though beyond six months is eligible for exemption – Decided in favor of assessee.
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