If the assessee is able to keep the six months’ limit from the date of transfer of capital asset, but, still able to place investment of Rs. 50 lakhs each in two different financial years, we cannot say that the restrictive proviso will limit the claim to Rs. 50 lakhs only. Since assessee here had placed Rs. 50 lakhs in two different financial years but within six months period from the date of transfer of capital asset, assessee was definitely eligible to claim exemption upto Rs. 1 Crore. The same view has been taken by Ahmedabad Bench of this Tribunal in the case of AspiGinwala & Others (supra). We are, therefore, of the opinion that the assessee has to succeed in this appeal. Claim of the assessee for exemption upto Rs. 1 Crore has to be allowed in accordance with Section 54EC of the Act.
ITAT CHENNAI BENCH ‘D’
Smt. Sriram Indubal
versus
Income-tax Officer, Business Ward
IT Appeal NO. 1950 (MDS.) OF 2012
[ASSESSMENT YEAR 2008-09]
Date of Pronouncement – 31.01.2013
ORDER
Abraham P. George, Accountant Member
In this appeal filed by the assessee, its grievance is that the CIT(Appeals) confirmed the restriction of her claim of exemption of Rs. 1 Crore under Section 54EC of Income-tax Act, 1961 (in short ‘the Act’), to Rs. 50 lakhs.
2. Facts apropos are that assessee had, during the relevant previous year, sold a property comprising of land and building at Plot No.21, Door No.142, MGR Salai, Palavakkam, Chennai-41, for a consideration of Rs. 3,46,50,000/-. Sale proceeds were invested by the assessee as under:-
