TMI Blog2020 (9) TMI 490X X X X Extracts X X X X X X X X Extracts X X X X ..... its first proviso, it is clear that the time limit for investment is six months from the date of transfer and even if such investment falls under two financial years, the benefit claimed by the assessee cannot be denied. The amendment in Finance (No.2 Act) 2014 relate to assessment year 2015-16 (i.e. insertion of second proviso to section 54EC(1) and the same applies prospectively for and from as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ised reads as follows: Ground No.2: The learned CIT(A) erred in upholding the addition of ₹ 21,00,000/- and also failed to appreciate the facts and the provisions of the act under section 54E(1) and first proviso, that the investment was made in two different financial years which are well within the six months period from the date of transfer of long-term capital asset as stipulated u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted in the Demat account of the assessee on 10.5.2013 and 5.9.2013 respectively. 3. The A.O. passed an order of assessment u/s 143(3) of the Act (order dated 29.1.2016), wherein he did not give deduction for a sum of ₹ 21 lakhs u/s 54EC of the Act and he recomputed the assessee s total income at ₹ 1,28,42,030/-. The A.O. concluded that both the investment in NHAI bonds happened in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for assessment year 2013-14, the case laws relied etc. 6. The Ld. D.R. on the other hand strongly supported the order of assessment and the CIT(A) in restricting the claim of deduction to a sum of ₹ 50 lakhs. 7. We have heard the rival submissions and perused the materials available on record. As per the provision of section 54EC(1) of the Act and its first proviso, it is clear that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial years and within six months from the date of transfer of the capital assets, the limit of ₹ 50 lakhs is per financial year. Hence, the assessee is eligible for deduction of ₹ 71 lakhs u/s 54EC of the Act. It is ordered accordingly. 9. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 11th Sept, 2020 - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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