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2015 (9) TMI 1226 - AT - Income TaxDisallowance of exemption u/s.54EC - further investment in REC bonds of ₹ 50 lakhs made in the next financial year - CIT(A) deleting disallowance - Held that:- The issue is squarely covered by the decision of Hon’ble Madras High Court in the case of Jaichander, [2014 (11) TMI 54 - MADRAS HIGH COURT ] wherein held from a reading of Section 54EC(1) and the first proviso, it is clear that the time limit for investment is six months from the date of transfer and even if such investment falls under two financial years, the benefit claimed by the' assessee cannot be denied. It would have made a difference, if the restriction on the investment in bonds to ₹ 50,00,000/- is incorporated in Section 54EC(1) of the Act itself. However, the ambiguity has been removed by the legislature with effect from 1.4.2015 in relation to the assessment year 2015-16 and the subsequent years. Also see case of Dr. Kumar M. Dhawale [2015 (2) TMI 624 - ITAT MUMBAI]. Thus no infirmity in the order of CIT(A) for allowing further claim of exemption in respect of investment made in subsequent financial year amounting to ₹ 50 lakhs u/s.54EC of the I.T.Act. - Decided against revenue.
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