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2016 (12) TMI 1081 - AT - Income TaxEligible for exemption of the capital gains u/s 54EC - AO held that since the investment in the specified securities as stipulated u/s 54EC of the Act were not paid on or before 12th April, 2009, the assessee is not entitled to claim deduction - Held that:- The word ‘month’ as stipulated in Section 54EC of the Act clearly postulate that the investment in long term specified assets is to be made within six months from the date of transfer of original asset , as the word ‘month’ has not been defined under the Act , the reference to Section 3(35) of General Clauses Act,1897 has to be adopted which provides “Month” shall mean a month reckoned according to the British calendar. The REC bonds were subscribed by the assessee on 24-04- 2009 and were allotted to the assessee by REC on 30th April, 2009 which is within six months after the date of transfer of asset as per British Calendar month, hence, the assessee fulfilled the conditions laid down under section 54EC of the Act and as such assessee is eligible for deduction u/s 54EC of the Act of ₹ 17,50,000/- invested in long term specified assets being REC Bonds on 24-04-2009 which is within six months from the end of the month in which transfer took place i.e. October 2008 , the original asset having being sold on 13-10-2008 . - Decided in favour of assessee.
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