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2014 (6) TMI 1044 - AT - Income TaxExemption u/s 54EC - assessee has invested the sale consideration in REC bonds beyond the prescribed time limit of six months - assessee is 94 years old, a retired army officer AND chartered accountant appearing for the assessee, the assessee fell ill and could not attend the work of depositing the sale consideration in the bonds within the rigidity of the time frame - HELD THAT:- Assessee was prevented from investing his money within the period of six months because of his illness. The assessee was making efforts to locate a suitable house for him. The moment he came to know that it was not possible for him to find out a house immediately, he sought for the alternative remedy suggested by the statute to invest the funds in eligible bonds. Once he decided to invest in bonds, he fell ill and was prevented from purchasing the bonds within the stipulated period. As soon as he recovered from the illness, he purchased the bonds and complied with the provisions of sec.54EC even though by a normal gap of 59 days. Assessee is excused by the Doctrine of supervening impossibility. It was not possible for the assessee to purchase the bonds on or before 3rd December, 2007 because of his illness. He purchased the bonds immediately after recovering from the illness. Nominal delay of 59 days is excused by Law. When the delay is excused on a principle of law, we have to see that the assessee is entitled for the exemption on the ground that the delay is to be ignored. Therefore, we find that it is necessary to construe that the assessee has purchased the bonds within due date and, therefore, entitled for exemption provided under sec.54EC. - Decided in favour of assessee.
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