TaxTMI 
TaxTMI 
TaxTMI 
2017 (9) TMI 377
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....7.2013 declaring total income of Rs. 58,60,850/-. The AO noted that the assessee received capital gains of Rs. 7,65,20,244/- from sale of tenancy rights during the year under consideration. The assessee claimed deduction under section 54EC amounting to Rs. 1 crore from the investment in RECL Bonds. The investment of Rs. 50 lakhs each were made in the month of March 2013 and May, 2013 falling within the stipulated period of six months but in two different financial years. The AO disallowed Rs. 50 lakhs under section 54EC as in his opinion the deduction under section 54 EC by making an investment cannot exceed Rs. 50 lakhs in the assessment year. The assessee went in appeal before the CIT(A). Relying on the decisions of various Tribunals and after interpreting the provisions of Section 54EC the CIT(A) allowed the ground of appeal of the assessee and directed the AO to allow the deduction under section 54EC amounting to Rs. 1 crore. Aggrieved by the order of the CIT(A), the assessee is in appeal before us. 3. We have heard the rival submissions and carefully considered the same. We noted that this issue is duly covered in favour of the Assessee by the decision of the Bangalore Bench ....
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.... the assessee is entitled for exemption of Rs. 1 Crore as six months period for investment in eligible investment involves two financial years. If the answer to this question is "yes", whether investment made by the assessee on 26-05- 2008 beyond six months period is eligible for exemption in view of the fact that no subscription for eligible investment was available to the assessee from 1st April, 2008 to 26-05-2008. 8. While going through the proviso of section 54EC, we find that the proviso to section reads 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 rupee]" It is clear from this proviso that where assessee transfers his capital asset after 30th September of the financial year he gets an opportunity to make an investment of Rs. 50 lakhs each in two different financial years and is able to claim exemption upto Rs. 1 Crore u/s 54EC of the Act. Since the language of the proviso is clear and unambiguous, we have no hesitation in holding that the assessee is entitled to get exemption upto Rs. 1 Crore in this case. This view of ours g....
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....k strike and the cheque was cleared on 1-9-1995. In this view of the situation, it can well be said that the deposit of the assessee was in accordance with the provisions of statute as on the last date i.e. the 31-8- 1995, the deposit could not be made due to the reason which was beyond the control of the assessee particularly in view that the efforts were made by the assessee a day prior to last date to deposit the requisite amount in the bank to make him entitle for exemption under sec 54F. As mentioned earlier, this position has also been accepted by the learned CIT(A). Therefore, we direct the Assessing officer to allow the necessary exemption to the assessee. Before parting we may observe that section 54F is a beneficial provision to encourage assessee to invest in house properties, Keeping in mind the above object behind the insertion of section 54F and considering the fact that the assessee was not at fault in not depositing the amount before 31-8- 1995, we hold that the deposit made on 1-9-1995 satisfies the condition laid down in section 54F of the Act." Since no contrary decision was cited on behalf of the Revenue, we are left with no option but to hold that the invest....
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....nefit was available to all the investors. For this purpose, it was necessary to ensure that the limited number of bonds available for subscription is also available for small investors. Therefore, with a view to ensure equitable distribution of benefits amongst prospective investors, the government decided to impose a ceiling on the quantum of investment that could be made in such bonds. Accordingly, the said section has been amended so as to provide for a ceiling on investment by an assessee in such long-term specified assets. Investments in such specified assets to avail exemption under Section 54EC, on or after 1st day of April, 2007 will not exceed fifty lakh rupees in a financial year." From this circular also, it is apparent that the Government only intended to restrict the investment in a particular financial year and accordingly has fixed the limit of Rs. 50,00,000/- as permissible limit in a particular financial year. The Government did not intend to restrict the maximum amount of exemption permissible under Section 54EC. Legislature in our opinion has consciously used the words "in a financial year" in the proviso to Sec. 54EC of the Act. If the legislature wanted to re....