2014 (6) TMI 1044

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.... years old, a retired army officer. He has been filing his returns of income on a regular basis for more than last 60 years. In the previous year relevant to the assessment year under appeal, the assessee had sold a flat owned by him at Munirka, New Delhi for a sum of Rs. 30 lakhs through the sale deed executed on 4.6.2007. This pertains to the impugned assessment year. The assessee sold his house property at Delhi with an intention of moving along with his wife to Chennai, so that the old couple could spend rest of their life in Chennai, where their daughters are living. In order to get the company of their daughters in the old age, they moved to Chennai. The assessee wanted to purchase a residential property in Chennai but could not find ....

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....nefit of exemption under sec.54EC for the reason of certain supervening impossibilities. In such circumstances, when the assessee was prevented from investing the funds in the eligible bonds, the question is, whether a nominal delay in depositing the funds in the bonds would disentitle the assessee to claim the benefit under sec.54EC or not. 5. Here, the assessee is a retired army officer. He is more than 90 years old. He has been filing his returns of income for decades in the past. It is to be seen that a retired public servant may not be all the time supported by the advice and assistance of professionals like chartered accountants. But, still the gentleman the assessee knew himself that if he did not purchase another house property w....

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.... carefully examined, we find that the assessee was prevented from investing his money within the period of six months because of his illness. The assessee was making efforts to locate a suitable house for him. The moment he came to know that it was not possible for him to find out a house immediately, he sought for the alternative remedy suggested by the statute to invest the funds in eligible bonds. Once he decided to invest in bonds, he fell ill and was prevented from purchasing the bonds within the stipulated period. As soon as he recovered from the illness, he purchased the bonds and complied with the provisions of sec.54EC even though by a normal gap of 59 days. 8. In the peculiar facts and circumstances of the present case, we find....