Case Law Details
Shri Anil Kumar Dulichand Vs ACIT (ITAT Mumbai)
As per section 54EC of the Act, any Long Term Capital Gain (LTCG), arising to any assessee, from the transfer of any capital asset on or after 01.04.2000 shall be exempt to the extent such capital gain is invested within a period of six months after the date of such transfer in the long-term specified asset provided such specified asset is not transferred or converted into money within a period of three years from the date of its acquisition. The investment is restricted only upto Rs.50,00,000/-. In the instant case, the purchase agreement was registered on 05.08.2011. Again an additional stamp duty of Rs.1,41,070/- was paid on 22.03.2012 and thus the registration was completed. The appellant purchased the REC Bond on 31.03.2012.
We refer here to page 25 of the Paper Book (P/B) filed by the assessee. As per it the assessee has paid Rs.1,41,070/- towards additional stamp duty on 22.03.2012 to complete the process of registration of the ‘Purchase Agreement’. The assessee filed its return of income for the impugned assessment year on 20.03.2014. The AO completed the assessment u/s 143(3) on 04.03.2015. Thus no one can say that the payment of additional stamp duty by the assessee is an afterthought.
To sum up by paying the additional stamp duty of Rs.1,41,070/-the appellant completed the process of registration of the ‘Purchase Agreement’ on 22.03.2012. The appellant purchased the REC Bond on 31.03.2012.
Date of transfer of property to compute the six-months period for the purpose of claiming deduction under section 54EC of Income TAx Act, 1961 could not be taken from the date when the purchase agreement was registered because the transfer would complete after additional stamp duty to complete the process of registration was paid by assessee.
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