TMI Blog2008 (7) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... JUDGMENT The judgment of the court was delivered by K. RAVIRAJA PANDIAN J.— This appeal is filed against the order of the Income-tax Appellate Tribunal dated May 28, 2007, in I. T. A. No. 667/Mds/05, by formulating the following question of law : "In the light of the Explanation to section 54EA of the Income-tax Act, 1961, whether it is the net consideration received that is to be invested as contemplated by the statute for the purpose of claiming exemption under section 54EA of the Act or it would be sufficient if any other amount equivalent to the same is invested even before the date of receipt of the compensation ?" 2 . The assessee is an individual. The relevant assessment year is 2000-01. The assessee filed a return of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me within a period of six months after the date of such transfer, invested the whole or any part of the net consideration in any of the bonds, debentures, shares of a public company or units of any mutual fund referred to in clause (23D) of section 10 specified by the Board in this behalf by notification in the Official Gazette (such assets hereafter in this section referred to as the specified securities), 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 specified securities is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45; (b) if the, cost of the specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of sub-section (1), a rebate with reference to such cost shall not be allowed under section 88. Explanation- For the purposes of this section,— (a) 'cost', in relation to any specified securities, means the amount invested in such specified securities out of the net consideration received or accruing as a result of the transfer of the original asset; (b) 'net consideration', in relation to the transfer of a capital asset, means the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by the expenditure incurred wholly and exclusively in connection with such transfer." 4. The finding recorded by the authorities below are as under : 5. The assessee has received the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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