EXEMPTION U/S 54G

[MV GANGADHARAN]

THE ASSESSEE AS INDIVIDUAL EARNED CAPITAL GAINS BY SALE OF HIS OLD INDUSTRIAL SHED AND REINVESTED THE PROCEEDS IN NON URBAN AREA IN NEW PLANT AND MACHINERY IN A PARTNERSHIP FIRM IN WHICH HE IS A PARTNER.INFACT HE HAS RELOCATED HIS STRUCTURAL ENGINEERING BUSINESS TO THE PARTNERSHIP FIRM. HE CLAIMED EXEMPTION OF CAPITAL GAINS U/S 54G. THE A O HOWEVER DIS ALLOWED THE STATING THAT THE REINVESTMENT SHOULD HAVE BEEN UNDER THE SAME P A N . HOWEVER READING SEC 54 G WHICH USES THE WORD UTILIZED, I FEEL A RESTRICTED INTERPRETATION IS .NOT JUSTIFIED PL GIVE YOUR VALUED OPINION

AI Summary

Dispute Over Capital Gains Exemption: Reinvestment in Non-Urban Plant Through Partnership Challenges Section 54G Interpretation An individual sold an old industrial shed, earning capital gains, and reinvested the proceeds in a new plant and machinery located in a non-urban area through a partnership firm where he is a partner. He relocated his structural engineering business to this firm and claimed a capital gains exemption under Section 54G. The assessing officer disallowed the exemption, arguing that the reinvestment should have been under the same PAN. The individual believes that a restricted interpretation of Section 54G, which uses the term 'utilized,' is unjustified and seeks opinions on this matter.