TaxTMI 
TaxTMI 
2022 (3) TMI 248
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....e assessment year 2009-10. 2. In this case the Assessee had filed his return of income on dated 15.02.2011 by declaring total income of Rs. 2,18,99,694/-, which was processed u/s. 143(1) of the Act. Thereafter, the case of the Assessee was selected on the basis of AIR information, wherein it was revealed that the Assessee has sold two immovable properties during the FY 2008-09 for the consideration of Rs. 4,72,50,000/- and Rs. 97,95,100/-. Consequently, the case of the Assessee was reopened u/s. 147 of the Act and the statutory notice u/s. 148 was issued on 16.03.2016, which was duly served upon the Assessee on 20.03.2016. In compliance of which the Assessee submitted the copy of acknowledgment of return of income for the Assessment Year....
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....claimed by the Assessee as investment on 26.06.2010. The AO also referred to new provision in section 54EC of the Act, which was inserted by Finance (No. 2) Bill, 2014 in the Act w.e.f. 1-4-2015, wherein it is provided 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. 2.2. Against the said disallowance the Assessee preferred first appeal before the ld. Commissioner by raising the following grounds of appeal:- "1. Because the assessing officer has erred the law and on merits of the cas....
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....deduction to the Assessee to the extent of Rs. 1 crores u/s. 54EC of the Act. 4. Against the impugned order the Assessee is in appeal before us. 5. Heard the parties and perused the material available on record. The issue involved in the instant case relates to the claim of exemption u/s. 54EC of the Act which mandates that the Assessee at any time within the period of six months, after date of such transfer, invested the whole or any part of the capital gain in the long-term specified asset, the capital gain shall be dealt in accordance with the following provisions of section 54EC of the Act:- [Capital gain not to be charged on investment in certain bonds. 54EC. (1) Where the capital gain arises from the transfer o....
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....r 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. 5.1. It is the case of the Assessee that the Assessee was supposed to invest u/s. 54EC of the Act within six months of the arising of capital gain or selling of properties to the extent of Rs. 50 lakhs each in the financial year in which the property was sold and in the subsequent financial year if the same falls within six months gaining of capital gain. The ld. Commissioner while confirming the disallowance/addition relied upon the judgment passed by the ITAT Jaipur Bench in case of ACIT Vs. Shri Raj Kumar Jain & songs (HUF) (supra) whereas it is a fact....
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....2015. The memorandum explaining the provisions in the Finance (No. 2) Bill, 2014 also states that the same will applicable from 1.4.2015 in relation to assessment year 2015-16 and the subsequent years. The intention of the legislature probably appears to be that this amendment should be for the assessment year 2015-2016 to avoid unwanted litigations of the previous years. Even otherwise, we do not wish to read anything more into the first proviso to Section 54EC (1) of the Act, as it stood in relation to the assessees. The Honorable High court has further observed and underlined as under; "In any event, from a reading of Section 54EC(1) and the first proviso, it is clear that the time limit for investment is six months fro....