TMI Blog2014 (6) TMI 1044X X X X Extracts X X X X X X X X Extracts X X X X ..... , he sought for the alternative remedy suggested by the statute to invest the funds in eligible bonds. Once he decided to invest in bonds, he fell ill and was prevented from purchasing the bonds within the stipulated period. As soon as he recovered from the illness, he purchased the bonds and complied with the provisions of sec.54EC even though by a normal gap of 59 days. Assessee is excused by the Doctrine of supervening impossibility. It was not possible for the assessee to purchase the bonds on or before 3rd December, 2007 because of his illness. He purchased the bonds immediately after recovering from the illness. Nominal delay of 59 days is excused by Law. When the delay is excused on a principle of law, we have to see that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old age, they moved to Chennai. The assessee wanted to purchase a residential property in Chennai but could not find out a suitable house within the time prescribed for claiming exemption from capital gains. Therefore, he deposited the sale consideration in REC bonds. The deposit was made on 31.1.2008 against the sale deed executed on 4.6.2007. Sec.54EC provides exemption from capital gains taxation, if the sale proceeds are deposited in eligible bonds like REC bonds. The time prescribed for investing in the bonds is a period of six months. In this case, the assessee had to invest the sale proceeds in REC bonds on or before 3.12.2007. Actually, the investments have been made on 31.1.2008. There is a delay of 59 days. Because of this d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accountants. But, still the gentleman the assessee knew himself that if he did not purchase another house property within the prescribed time, he should deposit the sale consideration in eligible bonds. After selling his property at New Delhi, he came down to Chennai to settle near his daughters. This is quite natural in the old age. The assessee was not successful in locating a house property suitable to him. This is also quite natural in life. Since the assessee came to know that he may not be able to locate a house property immediately, he sought the alternative remedy of depositing the sale consideration in the eligible bonds. 6. Meanwhile, as argued by the learned chartered accountant appearing for the assessee, the assessee fel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EC even though by a normal gap of 59 days. 8. In the peculiar facts and circumstances of the present case, we find that the assessee is excused by the Doctrine of supervening impossibility. It was not possible for the assessee to purchase the bonds on or before 3rd December, 2007 because of his illness. He purchased the bonds immediately after recovering from the illness. Therefore, the nominal delay of 59 days is excused by Law. When the delay is excused on a principle of law, we have to see that the assessee is entitled for the exemption on the ground that the delay is to be ignored. Therefore, we find that it is necessary to construe that the assessee has purchased the bonds within due date and, therefore, entitled for exemption provi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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