Brief of the case
ITAT Mumbai has held in the case of C.R. developments Vs. JCIT that time limit for investment is six months from the date of transfer and even if such investment falls under two financial years, the benefit claimed by the assessee cannot be denied. Assessee eligible for deduction under section 54EC on investment of Rs. 50 Lakh Each made in two Financial Year against same transaction.
Assessee earned LTCG of Rs. 1.04 Cr. on sale of shares. It claimed exemption of Rs. 1 Cr. u/s 54 EC and declared remaining amount as LTCG. It was found that assessee had invested 50 lacs on 31/3/09 and 50 lacs on 30/4/09. A.O. restricted assesse’s claim to extent of Rs. 50 lacs taking a view that it was the maximum limit prescribed in Section 54 EC and it is related to transaction only and not to different financial years. Tribunal however relied upon a decision of HC in another case to effect that time limit for investment is six months from the date of transfer and even if such investment falls under two financial years, the benefit claimed by assessee cannot be denied. Therefore, assesse’s claim was allowed.
Assessee was engaged in business of construction and development .It showed three vacant flats/shops as stock in trade , in its books. A.O. estimated letting value of said shops and brought their notional income taxable in ‘Income From House Property’ u/s 23. It was contented that said flats were assesse’s ‘ trading assets’ , therefore could not be treated u/s 23.Tribunal upheld assessee’s contention and therefore held that income from sale of said flats would be taxable as ‘Business Income’ of assessee.
Facts of the case
FACTS
- The assessee was engaged in the business of construction and development.
- During the course of scrutiny proceedings, the AO found that assessee had three shops as stock-in-trade as at the end of the year. The AO computed the notional income in respect of all the three shops u/s.23 as income from house property.
Contention of Assesse
