2020 (12) TMI 24

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.... 2009-10. The appeal was admitted by a Bench of this Court vide order dated 22.09.2015 on the following substantial question of law: "Whether the Tribunal was correct in holding that the assessee is eligible for deduction of rupees 1 crore u/s. 54EC without appreciating that the Commissioner of income tax directed the assessing officer to disallowed the deduction to the extent of rupees 50 lakhs holding that the phrase "during any financial year" means during any financial year after the first day of April 2007 and the intention of law was to identify any one of the financial years following 1.4.2007, and did not intend to include therein more than one financial year simultaneously?" 2. The factual background in which the afores....

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....ade to Section 54EC of the Act with effect from 01.04.2005 as well as Explanatory Memorandum to Finance (No.2) Bill, 2014, interalia held that the legislature itself has accepted the ambiguity in language of the proviso and has amended the law with prospective effect i.e., Assessment Year 2015-16. It was further held that for the Assessment Year prior to Assessment Year 2015-06 on interpretation of the provisions, it was possible for the assessee to claim deduction of Rs. 1 crore by investing Rs. 50 lakhs in each of the Financial Years but within six months from the date of transfer. Thus, it was held that the view taken by the Assessing Officer was one of the possible view and therefore, the power under Section 263 of the Act in the fact s....

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....cular year. It is further submitted that the intention of the Government was not to restrict the maximum amount of exemption permissible under Section 54EC of the Act. 6. We have considered the submissions made by learned counsel for the parties and have perused the records. Before proceeding further, it is apposite to take note of the relevant extract of Section 263 of the Act, which reads as under: 263. Revision of orders prejudicial to revenue (1) The Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the revenue, he, may, after giving the assessee ....