TMI Blog2017 (9) TMI 1987X X X X Extracts X X X X X X X X Extracts X X X X ..... nment bond and where proviso came for the first time on 01.4.2007 providing benefit of 50 lacs each of the transaction of the property the view taken by the Tribunal is just and proper. We are not in agreement with the view taken by the Madras High Court [ 2014 (11) TMI 54 - MADRAS HIGH COURT] . The benefit is qua one transaction. It cannot have for different financial years. The purpose is to have investment for benefit of long term capital and once there is interpretation put forward by the basic connotation of law, in that view of the matter, we are affirming the view of the Tribunal. Decided against the assessee. - D.B. Income Tax Appeal No. 157 / 2012 - - - Dated:- 20-9-2017 - HON'BLE MR. JUSTICE K.S.JHAVERI AND HON'BLE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the original asset, the whole of such capital gain shall not be charged under section 45; (b) if the cost of the long-term specified asset is less than the capital gain arising from the transfer of the original 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 g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) a deduction from the amount of income-tax with reference to such cost shall not be allowed under section 88 for any assessment year ending before the 1st day of April, 2006; (b) a deduction from the income with 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med and registered under the Companies Act, 1956 (1 of 1956) 71 72 [; or any other bond notified by the Central Government in this behalf]. 4. He contended that it was brought w.e.f. 01.04.2007 and cannot have retrospective effect. 5. He has relied upon the decisions mainly on Madras High court decision reported in (2015) 370 ITR 0579. Madras High Court in paras 5, 6 and 7 has observed as under:- 5. The key issue that arises for consideration is whether the first proviso to section 54EC(1) of the Act would restrict the benefit of investment of capital gains in bonds to that financial year during which the property was sold or it applies to any financial year during the six months period. 6. For better understanding of the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stricts the time limit for the period of investment after the property has been sold to six months. There is no cap on the investment to be made in bonds. The first proviso to section 54EC(1) of the Act specifies the quantum of investment and it states that the investment so made on or after April 1, 2007, in the long-term specified asset by an assessee during any financial year does not exceed fifty lakhs rupees. In other words, as per the mandate of section 54EC(1) of the Act, the time limit for investment is six months and the benefit that flows from the first proviso is that if the assessee makes the investment of Rs. 50,00,000 in any financial year, it would have the benefit of section 54EC(1) of the Act. 6. Learned counsel cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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