TMI Blog2015 (10) TMI 2705X X X X Extracts X X X X X X X X Extracts X X X X ..... es not receive any consideration, then, where is the question of investment? The investment can only be made when any amount is actually received by the assessee. In fact, date of receipt by the assessee/investor and date of deposit for obtaining the prescribed bonds are important dates. Suppose, the required bonds are not available with a particular bank/institution and are issued at a later stage, the date of deposit of the amount in the bank or the institution, as the case may be, are the relevant dates for getting the benefit of exemption u/s 54EC. For the purpose of section 54EC, the date of investment is to be regarded as the dates of investment/ the payment received by the authorized bank, thus, we find no infirmity in the conclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee entered into a development agreement with Sahil Builders for sale of plot for a consideration of ₹ 1,95,00,000/- and the agreement was registered on 26/04/2007. As per the development agreement, the terms of the payments were that the assessee has to make the payments as per the schedule mentioned at page 7 of the impugned order, i.e. the different payments were to be made from 09/03/2007 and till 02/04/2011, the last payment of ₹ 5 lakh was to made at the time of conveyance. The assessee received ₹ 45 lakh each on 07th and 08th October and invested the same in REC bond (Rs.50 lakh on 08/03/2008 and ₹ 30 lakh on 14/03/2009) within six months from the date of payment received from the developer. The ld. Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of acquisition of the longterm specified asset bears to the whole of the capital gain, shall not be charged under section 45 : Provided that the investment made on or after the 1st day of April, 2007 in the long-term specified asset by an assessee during any financial year does not exceed fifty lakh rupees : [Provided further that the investment made by an assessee in the long-term specified asset, from capital gains arising from transfer of one or more original assets, during the financial year in which the original asset or assets are transferred and in the subsequent financial year does not exceed fifty lakh rupees.] (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith reference to such cost shall not be allowed under section 80C for any assessment year beginning on or after the 1st day of April, 2006. Explanation.-For the purposes of this section,- (a) cost , in relation to any long-term specified asset, means the amount invested in such specified asset out of capital gains received or accruing as a result of the transfer of the original asset; (b) long-term specified asset for making any investment under this section during the period commencing from the 1st day of April, 2006 and ending with the 31st day of March, 2007, means any bond, redeemable after three years and issued on or after the 1st day of April, 2006, but on or before the 31st day of March, 2007,- (i) by the National Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here the capital gain arises from the transfer of long term capital asset and the assessee has any time within a period of six months, after the date of such transfer, invest, the whole or any part of the capital gains in the long term specified asset, the capital gain shall be dealt with in accordance with the provisions of the section. The position has been clarified with insertion of explanation which speaks about cost in relation to any long term specified asst , means the amount invested in such specified asset out of the capital gains received or accruing as a result of the transfer of the original asset, meaning thereby, the date of receipt or accruing are the important dates for making investment. The property in question, i.e., jo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake up, how the assessee can invest the same. The exemption for the amount, which was denied by the Assessing Officer was received by the assessee only on 05/07/2009, thus, the period of six months has to be calculated from this date and not from the date of agreement. The impugned amount was invested in REC bond by the assessee in July, 2009 itself, thus, the assessee cannot possibly perform the impossible Act because the provision u/s 54EC provides for exemption from tax to long term capital gain, provided the same is invested in the specified bonds, decided by the Government. Our view find supports from the decision from Hon ble jurisdictional High Court in Cello Plast (2012) 24 taxman.com 111 (Bom.) to the effect that law does not compe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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