Facts in brief as emerged from the corresponding assessment order passed u/s. 143(3), dated 1.12.2009 were that the assessee is a trust and during the year disclosed a capital gain of Rs. 87,29,080/-. It was informed that the assessee had invested a sum of Rs. 1,12,00,000/- in Rural Electrification Corporation Ltd. On the said investment, the assessee had claimed exemption u/s. 54EC. A building was owned by the Trust which was sold for a consideration of Rs.2,05,00,000/-. The REC bonds were purchased in the name of trustees or beneficiaries of the trust.
Following the view taken in the case of ITO vs. Smt. Saraswati Ramanathan – 116 ITD 234 (Delhi)”, the Hon’ble ITAT extended wider and liberal interpretation to the term “assessee” used u/s 54EC and held that the assessee-trust was rightly eligible for exemption u/s 54EC even if the investment in the prescribed bonds has been made in the names of trustees/beneficiaries of the assessee-trust.
INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD
ITA No. 2365/Ahd/2010- A.Y. 2007- 08
Popatlal N. Vora Inheritance Trust Vs. ITO
Date of Pronouncement: 22/11/2013
OR D E R
PER SHRI MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER
This is an appeal filed by the Assessee arising from an order of learned CIT(Appeals)-XVI, Ahmedabad, dated 17.05.2010. The grounds which are argued before us are reproduced below:
“The ld. CIT(A) has erred in law and on facts in confirming the action of ld. AO in disallowing deduction of Rs.87,29,080/- u/s. 54EC of the Act in the hands of Appellant Trust.
Alternatively and without prejudice, if the claim of deduction in the hands of the appellant trust is not granted, the said deduction may be directed to be granted in the hands of the individual beneficiaries of the appellant trust.”
2. Facts in brief as emerged from the corresponding assessment order passed u/s. 143(3), dated 1.12.2009 were that the assessee is a trust and during the year disclosed a capital gain of Rs. 87,29,080/-. It was informed that the assessee had invested a sum of Rs. 1,12,00,000/- in Rural Electrification Corporation Ltd. On the said investment, the assessee had claimed exemption u/s. 54EC. A building was owned by the Trust which was sold for a consideration of Rs.2,05,00,000/-. The REC bonds were purchased in the name of the following persons:
