Investment in specified equity shares under section 54EA triggers capital-gain charge if converted or transferred within three years. Specification designates equity shares issued by M/s Reliance Ports and Terminals Limited as qualifying investments for reinvestment relief under section 54EA, to be issued within one year and subject to an aggregate limit not exceeding sixty-six crores, provided investment is made from net consideration of transfer of a long-term capital asset. If the assessee converts or transfers the allotted shares within three years, the initial investment is chargeable to tax as a capital gain under the recapture provision.
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Provisions expressly mentioned in the judgment/order text.
Investment in specified equity shares under section 54EA triggers capital-gain charge if converted or transferred within three years.
Specification designates equity shares issued by M/s Reliance Ports and Terminals Limited as qualifying investments for reinvestment relief under section 54EA, to be issued within one year and subject to an aggregate limit not exceeding sixty-six crores, provided investment is made from net consideration of transfer of a long-term capital asset. If the assessee converts or transfers the allotted shares within three years, the initial investment is chargeable to tax as a capital gain under the recapture provision.
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