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2022 (6) TMI 1059 - AT - Income TaxBenefit of Section 54EC - Amount invested in bonds issued by NHAI - AO denied the benefit of Section 54EC holding that the investment in the bonds issued by NHAI was made after a period of 11 months taking the date of execution of unregistered Cancellation Deed - HELD THAT:- PA, a registered document whereby the developer has agreed to sale the flat to the Appellant which created rights/interest in the Flat being immovable property, was a registered document and therefore, the extinguishment such rights/interest could only be achieved only by way of a registered document. Thus, we find merit in the contention of the Appellant that date of registered Cancellation Deed (i.e. 11.09.2012) should be taken as the date of transfer of capital asset. In order to claim benefit of Section 54EC, investment must be made within six month from the transfer of the capital asset. In the case of Kartick Chandra Mondal [2020 (2) TMI 773 - ITAT KOLKATA] it has been held that term month means calendar months (and not a period of 30 days), which should be applied for the purpose of Section 54EC of the Act. Same view has been taken by Mumbai Bench of the Tribunal in the case of Mr. Yahya E. Dhariwala [2011 (11) TMI 381 - ITAT MUMBAI]. Respectfully, following the aforesaid decisions of the Tribunal we hold that the investment made by the Appellant in bonds issued by NHAI on 06.03.2013 falls with the period of six calendar months and thus, meets the requirement of Section 54EC of the Act. Accordingly, we are of the view that the Appellant is entitled to benefit of section 54EC of the Act in respect of amount invested in bonds issued by NHAI. - Decided in favour of assessee.
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