TMI Blog2015 (2) TMI 1380X X X X Extracts X X X X X X X X Extracts X X X X ..... ate of notification and has no retrospective effect. In view of the legal position mentioned above, the assessee s contention is not tenable. Bangalore was notified as urban area - assessee raised another issue that u/s 280ZA of the Act, which was a section providing for relief to Assessees who relocate their industries to Backward area, Bangalore was notified as urban area for the purpose of giving relief for shifting the industry from Bangalore to other backward area - Section 280ZA of the Act was introduced by the Finance Act 1965 with effect from 01/04/1965 and omitted by the Finance Act 1987 with effect from 01/04/1988. Section-280Z provided for relief by way of reduction of a fraction of tax on capital gains arising from the sale of the assets at the old place from where an industrial undertaking is shifted in terms of the scheme of the Central Government announced for this purpose. In order to be eligible for the concession specified conditions have to be fulfilled. Though the expression industrial undertaking has not been defined in this chapter, it should bear the meaning assigned to it in section 80J of the Act formerly section 84 of the Act. CBDT has issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at 47E, Bommasandra Industrial Area, Anekal, Bangalore for a sale consideration of Rs.90 lacs. There is no dispute that on such transfer there was a short term capital gain of Rs.85,11,648. The Assessee claimed that the capital gain is not chargeable to tax and is exempt u/s.54G of the Act. Section 54G, was inserted by the Finance Act, 1987 w.e.f. 1st April, 1988.The relevant provisions of Sec.54G of the Act reads as follows: 54G. Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area.-(1) Subject to the provisions of sub-section (2), where the capital gain arises from the transfer of a capital asset, being machinery or plant or building or land or any rights in building or land used for the purposes of the business of an industrial undertaking situate in an urban area, effected in the course of, or in consequence of, the shifting of such industrial undertaking (hereafter in this section referred to as the original asset) to any area (other than an urban area) and the assessee has within a period of one year before or three years after the date on which the transfer took place,- (a) purchased new machinery or plant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, building, etc. used for the purposes of the business of industrial undertaking. It envisages transfer in the course of, or in consequence of, shifting of industrial undertaking from an urban area to a non-urban area. Capital gains would be exempt to the extent it is utilised within a period of one year before or three years after the date of transfer in (i) acquiring new plant, machinery, land, building, etc. for the purpose of the business of the undertaking in the area to which it is shifted, (ii) incurred expenses in the purchase of new plant and machinery, etc. and in shifting of the establishment of the undertaking; and (iii) incurring other expenses as would be specified in a scheme to be drawn up by the Central Government. It may be noted that no such scheme had been notified by the Government as on the date of transfer of capital asset by the Assessee. 4. The Assessee claimed before the AO that it proposed to set up another industrial unit in a non-urban area at Anathapur District of AP for which it had advanced substantial amounts to M/S.APSFC and M/S.APIDC for the purchase of land in non-urban area in Anathapur District, State of Andhra Pradesh. 5. The first qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further appeal by the Assessee the ITAT in ITA No.948/Bang/2006 order dated 26.10.2006 set aside the order of the CIT(A) and remanded the issue to the AO on the representation of the Assessee that the Assessee has moved the CBDT to make the notification dated 27.4.2006 retrospective from 1.4.1988. 10. As per the directions of the ITAT the AO passed an order giving effect to order of ITAT on 31.12.2008 holding that no notification giving retrospective effect to notification dated 27.4.2006 was passed. The CIT(A) by his order dated 26.8.2010 confirmed the order of the AO. On further appeal by the Assessee, the ITAT in ITA No.1213/Bang/2010 dated 31.10.2011 restored the issue to the AO for fresh consideration to afford opportunity to the Assessee and adjudicate the issue. 11. On 24.12.2012 the AO passed an order giving effect to the directions of the tribunal dated 31.10.2010 holding that no notification giving retrospective effect to notification dated 27.4.2006 was passed. On further appeal, the CIT(A) by his order dated 30.8.2013 confirmed the order of the AO. The Assessee has filed the present appeal before the Tribunal against the order of the CIT(A). 12. We have heard t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we are of the view that the ld. CIT(Appeals) was justified in upholding the order of the Assessing Officer denying the benefit of section 54G to the assessee. 16. The ld. counsel for the assessee filed before us Notification No.9447 dated 6.1.1994. The said Notification was issued by the Central Govt. notifying areas which have to be regarded as urban areas for the purpose of section 2(1A) 2(14) of the Act, which defines agricultural income and capital assets respectively. It was pointed out by him that municipal area of Bangalore and area upto a distance of 8 Kms. from municipal limits of Bangalore in all directions have been notified as urban areas. According to him, definition of urban area cannot be different for the purpose of section 54G. 17. We are unable to accept the aforesaid argument of the ld. counsel for the assessee. The benefit conferred u/s. 54G of the Act is a specific benefit. Explanation below section 54G(1) of the Act contemplates notification by the Central Government for the purpose of allowing deduction u/s. 54G of the Act. The Notification issued under a different provision of the Act which is meant for different purpose cannot be applied while deali ..... X X X X Extracts X X X X X X X X Extracts X X X X
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