2006 (4) TMI 354

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....dition of investing the whole or any part of the net consideration received from the transfer of long term capital asset in the specified securities. ii.The Commissioner of Income-tax (Appeals) ought to have noted that when the assessee opted for receipt of sale consideration in the form of flats she had by choice foregone the benefit accruing out of investment of the net consideration in the specified securities as per the provisions of section 54EA of the IT Act and therefore there was no question of allowing such exemption under section 54EA of the IT Act for no such investment was made in the specified securities. iii.The Commissioner of Income-tax (Appeals) also ought to have held that the decision of the Bombay Tribunal in the c....

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.... assessee. The assessee relied on the decision of Bombay High Court in the case of Bombay Housing Corporation Ltd. v. ACIT, 81 ITD 545. 3.2 The learned Commissioner of Income-tax (Appeals) after considering the submissions observed as under: "The assessee's submissions are carefully considered. The Assessing Officer has denied exemption under section 54EA mainly on the ground that investment has not been made directly out of sale consideration, otherwise, the assessee is eligible for exemption under section 54EA of the I.T. Act. In the circumstances and in view of the Bombay Tribunal's decision relied on by the assessee, the Assessing Officer is directed to allow exemption under section 54EA of the I.T. Act." 4. Before us, the lear....