Period in deduction section 54EC of Income Tax Act has to be regarded as six British Calendar months

Niamat Mahroof Virj Vs ITO (ITAT Mumbai)

ITAT Mumbai held that in terms of General Clauses Act, 1897 period of six month mentioned in Section 54EC of the Income Tax Act has to be regarded as six British Calendar months.

Facts- The assessee is an individual and during the year under consideration the assessee had shown income from house property, business, other sources and capital gains. The assessee has earned capital gain on the sale of ancestral property along with her brother and cousins viz. Devji Kanji Building , Princess Street, Mumbai vide Indenture of Assignment made on 13t^h October, 2008 for a total consideration of Rs.1,05,00,000/- . The assessee declared long term capital gains of Nil after claiming deduction u/s. 54EC of the Act.

AO rejected the deduction claimed u/s. 54EC. CIT(A) also held that the assessee has made investment beyond the period of six month and hence not eligible for deduction u/s 54EC. Being aggrieved, the present appeal is filed.

Conclusion- The Special Bench of the tribunal, in Alkaben B. Patel v. ITO, has held that in terms of General Clauses Act, 1897 period of six month mentioned in Section 54EC of the Act has to be regarded as six British Calendar months.

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