TMI Blog2017 (11) TMI 2046X X X X Extracts X X X X X X X X Extracts X X X X ..... two assessment years - whether crucial expression any financial year meant only one financial year of reinvestment and not more than that? - HELD THAT:- It has come on record that the CIT(A) has followed the above co-ordinate bench order in concluding that assessee s reinvestment of capital gains to the tune of Rs.50 lacs each spread over in two financial years falling within 6 months is very much allowable as deduction claim u/s.54 EC of the Act. Hon ble Madras high court s judgment in CIT vs. C. Jaichander [ 2014 (11) TMI 54 - MADRAS HIGH COURT] also adopts a similar reasoning that there is no bar as propagated at Revenue s behest in allowing such a deduction claim. Their lordships further take into account amendment in Section 54E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the instant case file that there is no dispute between the parties about the fact that assessee had disclosed long term capital gains of Rs. 1,60,83,089/- to be arising from surrender of tenancy right as well as sale of shares in a Private Limited Company, received through gift. This followed Section 54EC deduction claim to the tune of Rs.1 crore i.e. Rs.50 lacs each reinvested from the above capital gains on 27.12.2010 and 25.04.2011 in NHAI and REC bonds in the nature of recognized mode of deduction. The Assessing Officer went in a detailed discussion to conclude that the impugned deduction provision could not be spread over to the maximum amount limit of Rs.50 lacs each spread over in two assessment years. He was of the view that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oes not exceed fifty lakh rupee] It is clear from this proviso that where assessee transfers his capital asset after 30th September of the financial year he gets an opportunity to make an investment of Rs.50 lakhs each in two different financial years and is able to claim exemption upto Rs. 1 Crore u/s 54EC of the Act. Since the language of the proviso is clear and unambiguous, we have no hesitation in holding that the assessee is entitled to get exemption upto Rs. 1 Crore in this case. This view of ours gets support from the following finding of the Hon'ble Supreme-Court in the case of IPCA LAB 266 ITR 521 (SC), wherein it has been held by the Hon'ble Supreme Court that even though a liberal interpretation has to be given t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such a deduction claim. Their lordships further take into account amendment in Section 54EC (1) by insertion of second proviso w.e.f. 01.04.2015 alongwith relevant explanatory memorandum to conclude that the amendment effect restricting the deduction amount to Rs.50 lacs only in any case would apply w.e.f. 01.04.2015 in relation to assessment year 2015-16. We reiterate that we are in assessment year 2011-12 only. The Revenue fails to dispute all these developments on judicial side. We therefore find no reason to interfere with the learned CIT(A) s order accepting assessee s deduction claim u/s.54EC of the Act. 6. This Revenue s appeal is accordingly dismissed. [Pronounced in the open Court on this the 1st day of November, 2017.] - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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