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TMI Blog2017 (9) TMI 1987X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. This Court while admitting the appeal on 02.01.2014, framed following substantial question of law:- "(i)Whether on facts and in the circumstances of the case and in law, the findings recorded by ld. ITAT while denying the exemption claimed u/S.54EC of the Act, are perverse and contrary to the facts on record and also contrary to the correct interpretation of law ?" 3. Counsel for the appellant taken us to Section 54EC of the Income Tax Act which reads as under:- "Capital gain not to be charged on investment in certain bonds. 54EC. (1) Where the capital gain arises from the transfer of a long-term capital asset (the capital asset so transferred being hereafter in this section referred to as the original asset) and the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of its acquisition, the amount of capital gains arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such long-term specified asset as provided in clause (a) or, as the case may be, clause (b) of sub-section (1) shall be deemed to be the income chargeable under the head "Capital gains" relating to long-term capital asset of the previous year in which the long-term specified asset is transferred or converted (otherwise than by transfer) into money. Explanation.-In a case where the original asset is transferred and the assessee invests the whole or any part of the capital gain received or accrued as a result of transfer of the original asset in any longterm specified asset and suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... poration Limited, a company formed and registered under the Companies Act, 1956 (1 of 1956), and notified by the Central Government in the Official Gazette for the purposes of this section with such conditions (including the condition for providing a limit on the amount of investment by an assessee in such bond) as it thinks fit: Provided that where any bond has been notified before the 1st day of April, 2007, subject to the conditions specified in the notification, by the Central Government in the Official Gazette under the provisions of clause (b) as they stood immediately before their amendment by the Finance Act, 2007, such bond shall be deemed to be a bond notified under this clause; (ba) "long-term specified asset" for making any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a period of six months after the date of such transfer, invested the whole or any part of capital gains in the long-term specified asset, the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,-- (a) if the cost of the long-term specified asset is not less than the capital gain arising from the transfer 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a one transaction and proviso which has been inserted in the same year. Therefore, proviso will not effect in any manner and the view followed by the Tribunal is just and proper. 8. We have heard learned counsel for the parties. 9. Taking into account the object of Section 54EC is to give benefit to the assessee to invest in the Government 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. 10. We are not in agreement with the view taken by the 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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