2017 (9) TMI 1099

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....mit of investment of Rs. 50 Lacs u/s. 54EC, applies to a particular transaction of capital gain and not to a financial year. 2) The Ld. CIT(A) erred in not granting exemption u/s. 54EC to the extent of Rs. 1 crore, even though all the conditions u/s. 54EC were satisfied. 3) The Ld. CIT(A) fell in error of law in not appreciating the settled position that where two views are possible, the view in favour of the assessee has to be adopted." 2. The brief facts of the case are that the assessee, an individual, filed his return of income for AY 2011-12 on 31-03-2013 declaring total income of Rs. 1,76,70,960 and the same was processed u/s 143(1) of the I.T. Act, 1961. The case was selected for scrutiny and notice u/s 143(2) al....

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....th regard to the date of transfer and period of investment. The AO restricted the claim because as per the provisions of section 54EC, the assessee can only invest upto Rs. 50 lakhs, but not more than Rs. 50 lakhs. In this regard he relied upon the decision of ITAT, B-Bench, Mumbai in the case of Neena Naresh M Singhi ITA No.6182/Mum/2014 dated 15-06-2016. The assessee also relied upon the decision of Hon'ble Madras High Court in the case of CIT vs Coramondel Industries Ltd (2015) 370 ITRE 586 (Mad). 4. The Ld.DR on the other hand submitted that as per the provisions of section 54EC, assessee can invest only Rs. 50 lakhs. The AO has brought out clear facts that the assessee has made investment over and above Rs. 50 lakhs which has been r....

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....xceed 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 provisois 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 gets support from the following finding of the Hon ble Supreme Court in the case of IPCA LAB 266 ITR 521 (SC), wherein it has been held by the Hon'ble Supreme Court that - "even though a l iberal interpretation has to be given to such ....