2017 (11) TMI 1721

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....emption from capital gains under Sections 54EC and 54F of the Income Tax Act, 1961,(for short 'the Act'). The case was selected for scrutiny under CASS. A notice under Section 143 (2), was accordingly issued. Upon considering the details furnished by the authorised representative of the assessee, the Assessing Officer (AO) has completed the assessment under Section 143 (3) on 16.01.2013, determining the total income as shown in the returns by the assessee. 2. The Commissioner of Income Tax-1, Visakhapatnam, (C.I.T.), has issued show cause notice under Section 263 of the Act, on 19.06.2014, calling upon the explanation from the assessee, as to why the assessment order dated 16.01.2013, shall not be reviewed. It was stated thereunder, that t....

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....ssessee as 24.11.2009 instead of as 12.08.2009, the date on which investment agreement was entered between the purchaser company and Vijay Nirman Company Private Limited and its shareholders, who include the respondent assessee. The AO has taken into consideration the date on which form No.7B is duly stamped and signed by both the parties and presented to the Company, which has in turn endorsed the same as the date of sale of shares. The Commissioner, however, took a different view and held that as the investment agreement was entered on 12.08.2009, the shares are deemed to have been sold on that day and that, if the periods stipulated under Sections 54EC and 54F of the Act, are computed from the said date, the investments of the sale proce....

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....as taken a different view. (See Malabar Industrial Co. Ltd. v. Commissioner of Income Tax (2000) 243 ITR 83 (SC) , Commissioner of Income Tax v. Max India Ltd. (2000) 295 ITR 282 (SC) and Commissioner of Income Tax v. Vikas Polymers (2012) 341 ITR 537 (Delhi)) 7. Section 2(47) of the Act reads as under: " 'transfer' in relation to a capital asset includes - (i). the sale, exchange or relinquishment of the asset; or (ii). the extinguishment of any rights therein; or (iii). The compulsory acquisition thereof under any law; or (iv). In a case where the asset is converted by the owner thereof into, or is treated by him as, stock-in-trade of a business carried on by him, such conversion or treatment; or (iva). The maturity or redemp....