TaxTMI 
TaxTMI 
2020 (11) TMI 314
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....The impugned Order passed by the Commissioner of Income tax (Appeals)-6, Bengaluru, dated 06-02-2017 is illegal, arbitrary and opposed to law and facts of the case. The learned officer has failed to note that the Hon'ble ITAT Bangalore has held, after analysing the Circular 3/2008 dated 12.03.2008 issued by CBDT in this regard, that Govt of India intended to fix the limit of Rs. 50 Lac as permissible investment in a particular financial year. Copies of the orders passed by the Hon'ble ITAT are enclosed. The learned officer has also failed to note that the Notes on Clauses in the Finance Bill 2014 and the Memorandum explaining the provisions in the Finance (No.2) Bill, 2014, have made it abundantly clear without any....
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..... The learned Authorised Representative appeared from time to time and submitted the details. In respect of investment of Rs. 50 lacs in the subsequent financial year though within the statutory period of six months as contemplated under the said section. The Assessing Officer has passed assessment order making the disallowance of the claim under Section 54EC of the Act. On appeal, the CIT (Appeals) confirmed the disallowance on the reason that the assessee has claimed exemption under Section 54EC and 54F of the Act as under : 54EC - 16.11.2012 Rs. 50 lacs. 54EC - 10.04.2013 Rs. 50 lacs. 54F Rs. 36,87,011 According to the learned CIT (Appeals), a sum of Rs. 50 lacs each was invested during F.Ys 2012-13 and 2013-14 respe....
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....om the transfer of a longterm 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 fro....
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.... Act, a second proviso, which reads as under: "Provided further that the investment made by an assessee in the long-term specified asset, from capital gains arising from transfer of one or more original assets, during the financial year in which the original asset or assets are transferred and in the subsequent financial year does not exceed fifty lakh rupees." 9. At this juncture, for better clarity, it would be appropriate to refer to the Notes on Clauses - Finance Bill 2014 and the Memorandum explaining the provisions in the Finance (No.2) Bill, 2014, which read as under: "Notes on Clauses - Finance Bill 2014: Clause 23 of the Bill seeks to amend section 54EC of the Income-tax Act relating to capital gain not to be charged on in....
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....nths, invested the whole or any part of capital gains in the longterm specified asset, out of the whole of the capital gain, shall not be charged to tax. The proviso to the said subsection provides that the investment made in the long-term specified asset during any financial year shall not exceed fifty lakh rupees. However, the wordings of the proviso have created an ambiguity. As a result the capital gains arising during the year after the month of September were invested in the specified asset in such a manner so as to split the investment in two years i.e., one within the year and second in the next year but before the expiry of six months. This resulted in the claim for relief of one crore rupees as against the intended limit for relie....