TaxTMI 
TaxTMI 
TaxTMI 
2016 (6) TMI 1279
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....year does not exceed Rs. 50,00,000/-. 2. During hearing, the ld. DR, Dr. Darsi Suman Patnam, defended the addition made by the Assessing Officer, whereas, none was present for the assessee in spite of issuance of notice, thus, we have no option but to proceed ex-parte, qua the assessee, and tend to dispose of this appeal on the basis of material available on record. 2.1. We have considered the submissions of the ld. DR and perused the material available on record. The facts, in brief, are that the assessee is a retired senior citizen, was connected with marketing consultancy in the field of pharmaceutical industry, was having its office at 102B Atlanata, Hirachandani Estate, Thane. The ld. Assessing Officer made the addition of Rs. 51,34,7....
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....to the decision from Hon'ble Madras High Court in Areba T & D India Ltd. vs ACIT 177 Taxman 192. The Ld. Commissioner of Income Tax (Appeal) deleted the addition on the plea that the assessee has fulfilled the condition enshrined in section 54EC of the Act as the investment was made on two different financial years. Before coming to any conclusion, we are reproducing hereunder the relevant provision of section 54EC of the Act:- Capital gain not to be charged on investment in certain bonds. 54EC. (1) Where the capital gain arises from the transfer of a long-term capital asset (the capital asset so transferred being hereafter in this section referred to as the original asset) and the assessee has, at any time within a period of six months....
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.... capital gains arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such long-term specified asset as provided in clause (a) or, as the case may be, clause (b) of sub-section (1) shall be deemed to be the income chargeable under the head "Capital gains" relating to longterm capital asset of the previous year in which the longterm specified asset is transferred or converted (otherwise than by transfer) into money. Explanation.-In a case where the original asset is transferred and the assessee invests the whole or any part of the capital gain received or accrued as a result of transfer of the original asset in any long-term specified asset and such assessee takes any loan or advance on the....
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....stered under the Companies Act, 1956 (1 of 1956), and notified by the Central Government in the Official Gazette for the purposes of this section with such conditions (including the condition for providing a limit on the amount of investment by an assessee in such bond) as it thinks fit: Provided that where any bond has been notified before the 1st day of April, 2007, subject to the conditions specified in the notification, by the Central Government in the Official Gazette under the provisions of clause (b) as they stood immediately before their amendment by the Finance Act, 2007, such bond shall be deemed to be a bond notified under this clause; (ba) "long-term specified asset" for making any investment under this section on or after t....
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.... by the Government. Our view find supports from the decision from Hon'ble jurisdictional High Court in Cello Plast (2012) 24 taxman.com 111 (Bom.) to the effect that law does not compel a man to do that which he cannot possibly perform. Even otherwise, section 54EC prescribes that exemption shall be available if the investment is made in the specified bonds within a period of six months, thus, the assessee, possibly can make the investment of the amount within the specified period, when it is received by the assessee. The intent and purpose of section 54EC is the date, when the assessee actually collects/receives the sale consideration and thereafter makes investment within six months and that is the date of transfer, thus, the spirit of th....