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6. The learned CIT(A) erred in holding that the appellant was not entitled to exemption u/s 54EC in respect of the investment in the eligible bonds on the ground that the appellant had not invested in those bonds within a period of six months from the date of transfer of the asset.

7. The learned CIT(A) failed to appreciate that the appellant had invested in the eligible bonds within a period of 6 months from the receipt of the sale consideration and accordingly, he was entitled to claim the deduction u/s 54EC.

9. In the result, Ground No.3, 4 and 5 are allowed for statistical purpose.

Ground No.6, 7 and 8 (regarding 54EC) :

10. The Assessee had made investment in REC Bonds on 30.09.2015. The Assessing Officer has not allowed deduction u/s.54EC of the Act, as the Investment was beyond a period of six months. However, the Assessee had submitted before the ld.CIT(A) that Assessee had not received the entire sale consideration on the date of agreement i.e. 09.01.2015. Assessee also submitted before the ld.CIT(A) that the last installment was received on July, 2015. Assessee has filed copy of the Bank Statement to demonstrate that major part of the sale consideration was received in July, 2015. We have perused the Bank Statement and the Ledger Account and are convinced that Major Part of the Sale Consideration was received in July, 2015. The Assessee has invested the sale consideration in REC Bonds on 30.09.2015. In this case, all the conditions have been satisfied by the assessee for availing deduction u/s.54EC of the Act. The delayed receipt of sale consideration was not in the control of the assessee. However, Assessee has invested in REC Bonds, immediately after the receipt of sale consideration. 10.1 ITAT Pune in the case of Shri Mahesh Nemichandra Ganeshwade & Others in ITA No.594/PN/2010 & Others dated 29.03.2012 has held as under :

"16. We have carefully considered the rival submissions. In this case, the dispute before us is with respect to the claim of exemption of long term capital gain on sale of land with respect to investments of Rs 12,50,000/- and Rs 37,50,000/- made on 3.8.2007 and 27.10.2007 respectively. Section 54EC prescribes that the exemption shall be available if the investment in specified Bonds is made within a period of six months after the date of transfer of the capital asset which, in the present case, is 12.7.2005. The assessee has explained that he could not make the investments within six months from the date of transfer, i.e. 12.7.2005 because the aforestated consideration was received on subsequent dates, namely, 12.12.2007, 14.5.2007, 19.6.2007 and 3.7.2007. A technical interpretation of section 54EC in this regard would imply that the exemption from tax on capital gains is not available qua the impugned investment of Rs 50 lakhs. So, however, the plea set-up by the assessee is on 14 account of the purpose and spirit of the section and on account of the fact that the right to collect such sale consideration arose after the period of six months from the date of transfer. It is pleaded that the requirement of section 54EC stipulating investment in six months from the date of transfer has to be appropriately understood and applied so as to further the purpose and spirit of the section.

17. In a somewhat similar situation, the requirement of section 54EC to the effect that investment in specified assets is to be made within a period of six months from the date of transfer, was put to some clarification by the CBDT in Circular No 791 (supra). The question arose before the CBDT regarding exemption of a long term capital asset which had arisen on conversion of a capital asset into stock-in- trade. Such capital gain would arise in the year of conversion, so however, in terms of section 45(2) of the Act, its taxability is postponed to the year in which such stock-in-trade is actually sold or otherwise transferred by the assessee. The question arose as to whether the date of transfer as referred to in section 54E of the Act is the date of conversion of capital asset into stock-in-trade or the date on which the stock-in-trade is sold or otherwise transferred by the assessee. As per the phraseology of sections 54EA, 54EB and 54EC the date of transfer in such cases is the date on which the capital asset is converted by the assessee into stock-in-trade and not the date on which such stock-in- trade is sold or otherwise transferred by the assessee. Thus, as per the aforesaid understanding it may not be possible for an assessee to make the required investment under the aforesaid sections at the point of conversion of capital into stock-in-trade because right to collect sale consideration in such cases arises only at the point of sale or transfer otherwise of stock-in-trade. The CBDT in consultation with the Ministry of Law decided that the period of six months for making investment in specified assets for the purpose of sections 54EA, 54EB and 54EC of the Act should be 15 taken from the date such stock-in-trade is sold or otherwise transferred in terms of section 45(2) of the Act, though the taxability of capital gain was on the basis of 'transfer' as understood in section 45(2) of the Act. Therefore, having regard to the impossibility of performance to invest the amount in specified assets within six months from the date of transfer (i.e. the date of conversion of capital asset into stock-in-trade) the CBDT appreciated and has clarified that the period of six months for making investment in specified assets has to be reckoned from the date of the sale of such stock-in-trade when the right to collect sale consideration in such cases arose, which was much after the date of transfer as contemplated for the purpose of taxation.