Case Law Details
CA Sandeep Kanoi
Coromandel Industries Pvt. Ltd. vs ACIT (ITAT Chennai)
The only issue involved in this appeal is whether the assessee is eligible for deduction under section 54EC for Rs. 50.00 lakhs or Rs. 1.00 crores. In this case, the assessee sold the property and invested Rs. 50.00 lakhs each in two different assessment years in REC Bonds within six months. The case of the Revenue is that the assessee is eligible claiming deduction only for Rs. 50.00 lakhs and remaining claim of Rs. 50.00 lakhs was denied. It is an undisputed fact that the assessee has invested in REC Bonds in two different assessment years. In similar circumstances, the Coordinate Bench of the Tribunal in the case of Smt. Sriram Indubal (supra) has considered the entire issue of eligibility under section 54EC and held that the assessee is eligible for claiming deduction of Rs. 50.00 lakhs in each assessment years. The relevant portion of the order is extracted as under:
7. We have perused the orders and heard the rival submissions. There is no dispute that assessee had transferred the capital asset on which she had claimed exemption under Section 54EC on 18.2.2008. Assessee had also claimed exemption under Section 54EC on investments made in REC and NHAI Bonds. Section 54EC(1), which is relevant to the case, is reproduced hereunder, for brevity:-
“54EC. Capital gain not to be charged on investment in certain bonds.—(1) Where the capital gain arises from the transfer of a long-term 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;—
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Amazing article sir !
Thank for the post.