2016 (6) TMI 479

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.... referred to as 'the Act'). 2. The assessee has raised only one substantive ground were Commissioner of Income Tax (Appeals) erred in upholding the order of Assessing Officer on denying the exemption u/s.54EC of the Act investment in REC capital gains bonds falling in two financial years. 3. The Brief facts of the case, the assessee is an individual having income from salary, rental income, capital gains and interest income and filed e-return on 28.09.2011 declaring total income Rs. 95,07,370/- and same was processed u/s.143(1) of the Act subsequently the case was selected for scrutiny through CASS and notices u/s.143(2) and 142(1) of the Act was issued with questionnaire. In compliance, the ld. Authorised Representative of assessee a....

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....e has placed Rs. 50 lakhs in two difference financial years but within six months period from the date of transfer of capital assets, assessee was definitely eligible to claim exemption upto Rs. 1 crore''. and but Assessing Officer deferred with the decisions of Tribunal as the Department has filed appeal against the order of Tribunal in the High Court and made elaborative finding in his order and came to a arbitrary conclusion that the investment of Rs. 50,00,000/- in bonds should be restricted as per exemption u/s.54EC of the act and dealt on the provisions of Sec.45 as under:- ''Capital gain not to be charged on investment in certain bonds:- (1) Where the capital gain arises from the transfer of a long-term capital asset (the ca....

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.... of sale of shares and allotment letter of REC bonds u/sed. 54EC of the Act as on 31.03.2011 and second allotment letter dated 30.04.2011. The ld. Commissioner of Income Tax (Appeals) considered the submissions on the provisions of Sec. 54EC of the Act and Department circular no.3/2008 and but made distinction on the decision relied by the assessee and deferred the judgment of High Court and come to a unilateral conclusion that assessee is eligible only for Rs. 50,00,000/- as investment u/sec. 54EC of the Act and concurred with the findings of the Assessing Officer and dismissed the appeal of the assessee. Aggrieved by the order of Commissioner of Income Tax (Appeals), the assessee filed an appeal before Tribunal. 5. Before us, the ld. A....

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....EC) under Sec.54EC of the Act and complied with the provisions of law by purchasing the bondsd in February, 2011 Rs. 50,00,000/- and Rs. 50,00,000/- in April, 2011 both falls within six months from date of transfer of asset and there is no dispute about the investment and the provisions u/s.54EC of the Act in investment in bonds is as under:- ''Provided that the investment made on or after the 1st day of April, 2007 in the long term specified asset by an assessee during any financial year does not exceed fifty lakh rupees'' this provision has been amendment by Finance Act, 2014 w.e.f. 1.04.2015 as under:- ''Provided further that the investment made by an assessee in the long term specified asset, from capital gains arising from transf....