2021 (4) TMI 334

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....aim of exemption against long term capital gains amounting to Rs. 45,83,160/-on the ground that the investment made was in excess of Rs. 50,00,000/- in a particular financial year in terms of section 54EC of the Act. In this regard observations by the Assessing Officer are as under :- On going through the submissions submitted during the assessment proceedings for the year under consideration, it is seen that during the F.Y. 2008-09 relevant to A.Y. 2009-10, the assessee has made following investments in specified Bonds u/s. 54EC of I.T. Act, 1961. a. Rs. 48,60,000/- in Non-Convertible Redeemable Taxable Bonds issued by National Highway Authority of India on a Long Term Capital Gain of Rs. 46,10,130/- for A.Y. 2008-09 (F.Y....

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....its authorized representatives letter no. A-5/11-12/01140 stated as under: (1) The assesses has sold .a residential flat on February, 2008 for a consideration of Rs. 50,89,5007- and had earned capital gains thereon of Rs. 46,10,130/- on the sale of said flat. The assessee invested a sum of Rs. 48,60,000/- in Capital Gains Bonds issued by M/s. National Highway Authority .within six months and claimed the exemption u/s. 54EC of the said Act, in his return of income filed for the A. Y. 2008-09. (2) The assessee then sold another residential flat on April 23, 2008 for a sale consideration of Rs. 50,89,5007- and earned capital gains thereon of Rs. 45,83,160/- on the sale of the said flat. The assessee invested Rs. 48,60,000/- b....

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.... to interest receipt as reflected in the ITS details. That there was shortfall of Rs. 54,822/- in interest receipts. The assessee has explained that this was by mistake and certain FDs were not accounted for in computing interest. Penalty was also levied in this regard. The assessee's plea that wrong claim u/s. 54EC was due to wrong advice of the professional was rejected by the Assessing Officer. Explanation regarding inadvertent mistake in interest income was also rejected by the Assessing Officer and penalty was levied. 4. Upon assessee's appeal learned CIT(A) reproduced Assessing Officer's observation as well as assessee's submission. Thereafter she referred to case laws and without pointing out how these case laws are relevant confi....