TaxTMI 
TaxTMI 
2011 (11) TMI 381
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....Out of Rs. 1,97,50,000 invested in REC bonds, Rs. 45,00,000 was invested on 30th August 2005. The assessee filed the return of income claiming deduction under section 54EC. The Assessing Officer came to a conclusion that the date of sale of shares was 24th February 2005. The assessee's claim is that the date of transfer of shares is 28th February 2005. On the ground that investment of Rs. 45,00,000, was not made in eligible / specified bonds within a period of six months from 24th February 2005, the Assessing Officer denied proportionate deduction claimed under section 54EC. 3. The original return of income was processed under section 143(1) on 15th January 2006. Thereafter, the assessee received a notice under section 154 of the Act in the month of July 2006, proposing enhancement of assessment by restricting exemption under section 54EC to the extent of Rs. 45,00,000. The assessee filed reply disputing the proposed rectification under section 154. Thereafter, notice dated 26th February 2008, was served under section 148 of Act, reopening the assessment under section 147. The assessee replied by submitting that the return of income filed on 31st December 2005, may be taken as t....
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....of Directors in the Board of Directors meeting. In the case of the Appellant the Board of Directors has approved the transfer of shares in the Board of Directors meeting held on 28.02.2005 and hence, the investment made on 30.08.2005 is within the prescribed period of 6 months as per the provisions of section 54EC of the Act." 5. Before us, learned Counsel, Mr. K. Gopal, on behalf of the assessee, submitted that the Assessing Officer wrongly took the date of stamping of share transfer form, as the date of transfer. He submitted that stamping of share transfer form takes place much before the date of actual execution of transfer. He submitted that the shares were of a private limited company and the question of variation in the market rate on a day-to-day basis, does not arise. He pointed out that in the case of private limited company, share transfer takes place only when the board of directors approve the transfer. The purchaser confirmed that the date of transfer is 28th February 2005. He submitted that from the records filed with the Registrar of Companies in the form of annual return, it is clear that the date of transfer was only 28th February 2005 and not 24th February 200....
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....e on 30th August 2005, was within a period of six months as contemplated under the Act. 10. Even if the date of transfer is to be taken as 24th February 2005, the wording used in the section is "At any time within a period of six months after the date of such transfer". Under the General Clauses Act, 1897, month is defined as follows:- "Month" shall mean the month reckoned according to the British Calendar. 11. The Hon'ble Madras High Court in Kadri Mills (Coimbatore) Ltd. (supra) held that the definition under the General Clauses Act, 1897, will apply to the term "month" occurring in the Income Tax Act, 1961, as there is nothing in the context to exclude the invocation of this definition. The Hon'ble Calcutta High Court in Brijlal Lohia & Mahabir Prosad Khemka (supra), held that as month is not defined under the Income Tax Act, 1961, the expression used under the General Clauses Act, 1897, should be applied. 12. In the Income Tax Act, 1961, the term "month" has been used in certain sections and wherever the legislature wanted to specify the number of days, it was stated as such in those sections. For e.g., in section 143(2)(ii) of the Act, the proviso to this section r....
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....-section (1A), the cost of the new asset referred to in that subsection is taken into account for the purposes of sub-section (1), the assessee shall, within a period of ninety days from the expiry of the period of three years reckoned from the date of such deposit, furnish to the [Assessing] Officer a certificate from the officer referred to in clause (b) of sub-section (1A) to the effect that the assessee has not taken any loan or advance on the security of such deposit during the said period of three years. 4. Section 92(D) : Maintenance and keeping of information and document by persons entering into an international transaction. (3) The Assessing Officer or the Commissioner (Appeals) may, in the course of any proceeding under this Act, require any person who has entered into an international transaction to furnish any information or document in respect thereof, as may be prescribed under sub-section (1), within a period of thirty days from the date of receipt of a notice issued in this regard Provided that the Assessing Officer or the Commissioner (Appeals) may, on an application made by such person, extend the period of thirty days by a further period not exceeding t....