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2013 (1) TMI 233 - AT - Income TaxExemption under section 54EC - AO allowed the claim - CIT issued notice u/s 263 as claim of deduction u/s 54EC was not acceptable as it was made beyond the time period of six months from the date of sale deed even 'beyond' the extended date i.e. 31.12.2006 - Held that:- It is evident that from the date of sale deed i.e. on 10.01.2006 the assessee had time limit of six months upto 10.07.2006 so as to invest the consideration for claiming exemption under section 54EC. However, as the paper book reveals, there is no effort stated to have been made by the assessee, which could lead to conclusion that she had applied for investment in bonds, but because of their non-availability, the investment could not be made. Notification F.No. 142/09/2006 TPL dated 30.06.2006 extended the time limit of six months envisaged by section 54EC upto 31.12.2006 which was followed by REC correspondence dated 01.08.2006. Even if it is presumed no evidence is forthcoming that the assessee ever applied for the bonds from any day upto 01.08.2006. There is no assertion on her part as to when the bonds are available thereafter. She only pleaded that on 22.12.2006, a cap was imposed on the maximum amount which could be invested in bonds i.e. Rs. 50.00 lakhs. In our opinion, the same is not relevant in the present case as the assessee's case is admittedly of investment of Rs. 35.00 lakhs. The assessee herself admitted that she did not invest in the bonds upto 31.12.2006. Rather her case is that she invested only on 27.01.2007 and the delay is attributed to non-availability of REC bonds. This, is not in consonance the express provision prescribing six months time limit which stood extended upto 31.12.2006. Unable to concur with assessee's contention that the time limit for investment which was admittedly extended by notification upto 31.12.2006 can be stretched upto 27.01.2007. Thus the assessee's claim of exemption u/s 54EC is not acceptable - against assessee.
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