TaxTMI 
TaxTMI 
TaxTMI 
2015 (10) TMI 2705
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.... months from the date of transfer and further did not fulfill the conditions prescribed in the agreement, therefore, exemption was wrongly allowed to the assessee. On the other hand, none was present for the assessee in spite of issuance of registered AD notice, therefore, we have no option but to proceed ex-parte qua the assessee and tend to dispose off this appeal on the basis of material available on record 2.1. If the observation made in the assessment order, leading to addition made to the total income, conclusion drawn in the impugned order, material available on record, assertions made by the ld. respective counsel, if kept in juxtaposition and analyzed, the facts, in brief are that the assessee is an individual declared income of R....
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....l 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 after the date of such transfer, invested the whole or any part of capital gains in the long-term specified asset, the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,- (a) if the cost of the long-term specified asset is not less than the capital gain arising from the transfer of the original asset, the whole of such capital gain shall not be charged under section 45; (b) if the cost of the long-term specified asset is less than the capital gain arising f....
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....ansferred 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 security of such specified asset, he shall be deemed to have converted (otherwise than by transfer) such specified asset into money on the date on which such loan or advance is taken. (3) Where the cost of the long-term specified asset has been taken into account for the purposes of clause (a) or clause (b) of sub-section (1),- (a) a deduction from the amount of income-tax with reference to such cost shall not be allowed under section 88 for any assessment year ending before the 1st day of April, 2006; (b) a ded....
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.... 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 the 1st day of April, 2007 means any bond, redeemable after three years and issued on or after the 1st day of April, 2007 by the National Highways Authority of India constituted under section 3 of the National Highways Authority of India Act, 1988 (68 of 1988) or by the Rural Electrification Corporation Limited, a company formed and registered under the Companies Act, 1956 (1 of 1956). 2.2. If the aforesaid provision is analyzed, it deals with capital gains not to be charged on investment in certain bonds. Sub-sectio....
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..../s 54EC of the Act for the amounts mentioned at serial no. 1 to 3 but denied for the amount mentioned at serial no at 4, by taking the period of six months from the date of agreement i.e. 02/04/2008. The Assessing Officer misdirected himself with respect to the pattern of investment. Unless and until anybody receives the amount, which are paid as a part of the detailed brake up, how the assessee can invest the same. The exemption for the amount, which was denied by the Assessing Officer was received by the assessee only on 05/07/2009, thus, the period of six months has to be calculated from this date and not from the date of agreement. The impugned amount was invested in REC bond by the assessee in July, 2009 itself, thus, the assessee cann....