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2017 (6) TMI 649 - AT - Income TaxDenial of exemption u/s. 54EC - whether 54EC bonds were availed during the month of December, 2006? - Held that:- We are of the opinion if 54EC bonds were not available in the market from 01/12/2006 to 22/01/2007, the assessee should be given a grace period of five days, since the assessee had invested in 54EC bonds on 27/01/2007 (whereas in the case considered by the Hon’ble Bombay High Court (supra), the investment was made only on 31/01/2007). For examination of these aspects, the matter is restored to the Assessing Officer. The Assessing Officer shall verify whether the bonds eligible for exemption u/s. 54EC were not available in the month of December, 2006 upto 21/01/2007. If the Assessing Officer finds that the 54EC bonds were not available for the above mentioned period, the benefit of deduction under section 54Ec should be granted to the assessee since the assessee had invested in 54EC bonds within the reasonable period of its availability in the market. In taking the above view, we rely on the judgment of the Hon’ble Bombay High Court in the case of CIT vs. Cello Plast (2012 (8) TMI 527 - BOMBAY HIGH COURT ) which is identical to facts of this case. Claim of exemption u/s. 54F - CIT-A power to consider claim - Held that:- CIT(A) has power to consider the claim of deduction u/s. 54F of the Act. Since on merits, whether the assessee is entitled to the benefit of the claim u/s. 54F has not been examined by the CIT(A), we deem it appropriate to restore the issue to the file of the Assessing Officer for de novo consideration. It is ordered accordingly. Interest u/s. 234B - whether is to be charged as per section 234B(1) or 234B(3) - whether the assessee is liable for interest only from 17/08/2014 to 14/03/2014 as per section 234B(3) as per CIT-A - Held that:- When proceedings u/s. 143(1) of the Act has been completed and issued to the assessee, interest is to be levied as per section 234B(3) of the Act from the date of proceedings u/s. 143(1) of the Act. Moreover we notice that section 234B(3) was amended by Finance Act, 2015 with effect from 1.6.2015 whereby interest u/s. 234B is to be calculated from first day of April to next following such financial year. Therefore, in view of the the amendment with effect from 1.6.2015, we are of the view that the order of the Commissioner is correct and no interference is called for. - Decided against revenue
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