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2018 (9) TMI 1613 - AT - Income TaxDisallowance of Investment in REC Bonds claimed as deduction u/s 54EC from LT Gain - delay between actual (Registered) transfer and effective deemed transfer was only 46 days - Held that:- As per section 54EC of the Act, any Long Term Capital Gain (LTCG), arising to any assessee, from the transfer of any capital asset on or after 01.04.2000 shall be exempt to the extent such capital gain is invested within a period of six months after the date of such transfer in the long-term specified asset provided such specified asset is not transferred or converted into money within a period of three years from the date of its acquisition. The investment is restricted only upto ₹ 50,00,000/-. In the instant case, the purchase agreement was registered on 05.08.2011. Again an additional stamp duty of ₹ 1,41,070/- was paid on 22.03.2012 and thus the registration was completed. The appellant purchased the REC Bond on 31.03.2012. As per it the assessee has paid ₹ 1,41,070/- towards additional stamp duty on 22.03.2012 to complete the process of registration of the ‘Purchase Agreement’. The assessee filed its return of income for the impugned assessment year on 20.03.2014. The AO completed the assessment u/s 143(3) on 04.03.2015. Thus no one can say that the payment of additional stamp duty by the assessee is an afterthought. To sum up by paying the additional stamp duty of ₹ 1,41,070/- the appellant completed the process of registration of the ‘Purchase Agreement’ on 22.03.2012. The appellant purchased the REC Bond on 31.03.2012. We set aside the order of the Ld. CIT(A). - Decided in favour of assessee
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