2018 (9) TMI 1613

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... appeal filed by the assessee reads as under: The CIT(A)-28 erred in confirming disallowance of Investment of Rs. 50 Lacs in REC Bonds claimed as deduction u/s 54EC from LT Gain by your appellant, Shri Anil Kumar Dulichand though the delay between actual (Registered) transfer and effective deemed transfer was only 46 days. 3. Briefly stated, the facts of the case are that the appellant/assessee filed his return of income for the assessment year (AY) 2012-13 on 20.03.2014 declaring total income at Rs. 26,81,810/-. During the financial year (FY) 2011-12, the assessee had sold a residential property for a consideration of Rs. 2,05,00,000/-. In the original computation of income, the assessee had claimed deduction u/s 54EC by invest....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....assessee, there is actual transfer on 22.03.2012 and therefore, purchase of REC Bond on 31.03.2012 is much within the six months period. However, the AO was not convinced with the above explanation of the assessee and held that as per the agreement, the assessee had already surrendered the capital asset on 05.08.2011. The assessee made investment in REC Bond on 31.03.2012 which is beyond the period of six months. Therefore, the AO disallowed the claim of deduction of Rs. 50,00,000/- made by the assessee u/s 54EC of the Act. 4. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) held that the case of the assessee is squarely covered by the inclusive definition of transfer in section 2(47....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(v) which is known in the legal word as an effective deemed transfer, whereas under provisions of section 53A of the Transfer of Property Act, 1982, the actual transfer is the registered stamped agreement, transfer lodged with the government authorities. Since various defined transfer under the Transfer of Property Act are not substitute to each other, but are complimentary, it is stated that the appellant ought to get benefits of investment u/s 54EC. Though under the Income Tax Act, section 2(47)(i) and 2(47)(ii) are introduced by the Taxation Law (Amendment) Act, 1984, whereas section 2(47)(v) is introduced by the Finance Act, 1987, since all these sub-sections of section 2(47) are not mutually exclusive, the Ld. CIT(A) should have giv....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....indow of investment in REC Bonds closed on 05.02.2012. It is evident that section 54EC mandates that the period of six months be counted from the date of transfer of the capital asset and transfer is defined in section 2(47) of the Act. Thus the Ld. DR supports the order passed by the Ld. CIT(A). 7. We have heard the rival submissions and perused the relevant materials on record. As per section 54EC of the Act, any Long Term Capital Gain (LTCG), arising to any assessee, from the transfer of any capital asset on or after 01.04.2000 shall be exempt to the extent such capital gain is invested within a period of six months after the date of such transfer in the long-term specified asset provided such specified asset is not transferred or con....