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2017 (1) TMI 58 - HC - Income TaxEntitlement to deduction u/s 54EC - assessee not fulfilled the mandatory requirement of making the investment within six months from the date of the transfer - Agreement to Sale dated 21st February, 2006 was never produced before the authorities - Held that:- We find that the Sale Deed dated 5th April, 2007 is produced. This itself in clause (d) thereof records the fact that the Agreement to Sale had been entered into on 21st February, 2006 in respect of the subject property and the amounts being received by the vendor (respondent assessee) under that Agreement to Sale. Thus, these amounts when received as advance under an Agreement to Sale of a capital asset are invested in specified bonds, the benefit of Section 54EC of the Act is available. In the above view, the Tribunal holds that the facts of the present case are similar to the facts before the Tribunal in Bhikulal Chandak HUF (2009 (6) TMI 605 - ITAT NAGPUR ). The Revenue does not dispute the same before us. Moreover, on almost identical facts, this Court in Ms. Parveen P. Bharucha Vs. DCIT, [2013 (1) TMI 295 - Bombay High Court] held that the earnest money received on sale of asset, when invested in specified bonds under Section 54EC of the Act, is entitled to the benefit of Section 54EC of the Act. This was in the context of reopening of an assessment and reliance was placed upon CBDT Circular No. 359 dated 10th May, 1983 in the context of Section 54E of the Act. - Decided in favour of assessee
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