9911796707
TMI Blog2007 (5) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case, the Tribunal was justified in upholding the order of the Commissioner of Income-tax (Appeals) dated December 30, 1992, directing the Assessing Officer to allow the assessee deduction under section 54B read with section 54H on account of the agricultural land purchased up to December 31, 1991, for Rs. 6,80,808 whereas deduction under section 54B has been erroneously considered and allowed by the Assessing Officer to the extent of Rs. 3,74,960 in his set aside assessment order dated October 21, 1991, passed under section 143(3)/251 of the Act whereas the Commissioner of Income-tax (Appeals) vide his order dated June 24, 1991, has given no such direction to the Assessing Officer to consider the claim of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of capital gains which arose during the assessment year 1977-78. He further submitted that the Tribunal erred in law in granting the benefits of the aforesaid provisions. 7 Shri V. K. Rastogi, learned counsel on the other hand, submitted that the respondent has received initial compensation only on September 5, 1984, and, therefore, capital gains, if any, arose during the previous year, relevant to the assessment year 1985-86. The respondents having invested amount within six months as contemplated under section 54E of the Act, the Tribunal had rightly allowed the benefit. He has relied upon the decision of the Andhra Pradesh High Court in the case of S. Gopal Reddy v. CIT [1990] 181 ITR 378. 8 Having given our anxious considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be given retrospective operation. The same principle is applicable in this case also. As we have already come to the conclusion that sub-section (5) of section 45 is to be given retrospective effect the necessary consequences which would follow is that the amount of compensation having been received in the previous year relevant to the assessment year 1985-86 could not have been treated as capital gains during the assessment year 1976-77. It is not disputed that the respondent has invested the amount in the specified assets within the period provided under section 54E of the Act and, therefore, the applicability of section 54E is to be judged from the date when capital gains had arisen. 10. In the present case, in the year 1984, section ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
