2014 (1) TMI 601

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... sale of flat and received an amount of Rs.20 lakhs on 24-02-2006. According to the ld.representative, the assessee claimed exemption u/s 54EC of the Act for the assessment year 2006-07 and the assessing officer accepted the claim of the assessee. During the assessment year under consideration, the assessee has received another sum of Rs.50 lakhs and the same was deposited in the REC capital gain bond. However, the assessing officer disallowed the claim of the assessee for exemption with regard to Rs.20 lakhs on the ground that the deposit was made before the date of transfer. The ld.representative further submitted that section 2(47) of the Income-tax Act defines "transfer". Under sub clause (v), if the purchaser was allowed to retain the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssee admits that the property was owned by her as on 31-03-2006, according to the ld.DR, there cannot be any justification in claiming now that the property was transferred on 01- 02-206. 5. We have considered the rival submissions on either side and also perused the material available on record. Though the transfer of property exceeding more than hundred rupees requires registered sale deed under the common law, the Income-tax Act being a special enactment provides a different definition for transfer of property. Under section 2(47)(v), if the possession was handed over as part performance of the agreement, then, there is a "transfer" within the meaning of section 2(47) of the Income-tax Act, even though there may not be a "transfer" unde....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ce it was an advance relatable to the capital asset it was not taken as income. This advance shall be adjusted when the property would be transferred and the capital gain computed. Thus, the advance could be adjusted against the purchase price when the transfer of the property is taken place, i.e. in the year under consideration. 8. We have carefully gone through the provisions of section 54EC of the Act. Section 54EC provides for exemption in respect of capital gain arising from transfer of a long term capital asset if the same was invested at any time within a period of six months after the date of transfer of the capital asset. In this case, admittedly, the investment of Rs.20 lakhs was made in the financial year 2006-07, i.e. before th....