transfer of his immovable property, the assessee claimed deduction under Section 54EC of the Income Tax Act, 1961 investing the entire sale consideration ... arising out of the sale transaction, the assessee claimed deduction under Section 54EC of the Income Tax Act, 1961 by investing the entire sale consideration
pointed out that even though Section 45(1) does not specify Section 54EC as had been done by erstwhile Sections 54 , 54A , 54B , 54EA , 54EB ... going by the import of Section 54EC(1)(a) and (b), the assessee was entitled to take advantage of the said provisions even before working
Electrification Corporation, for short 'Capital
Gains Exemption Bonds' under Section 54EC of the
Income Tax Act, 1961, for short 'Act', made ... absence
of a limit on the quantum of investment under Section
54EC . Petitioner filed a return of income-tax on
25.9.2006 declaring income
assessee has further claimed exemption of Rs.50
lakhs u/s.54EC by investing the same in Rural Electrification Corporation ... whereas the claim of the assessee is u/s.54EC.
Rejecting the arguments advanced by the assessee and distinguishing the
decision cited before
Assessing Officer in not allowing claim
of deduction u/s.54EC of the Act on long term capital gain referred
to in ground ... disallowed the claim of the
assessee for deduction u/s 54EC of the Income tax Act, 1961 also for the
same reason that such deduction
lakhs in December, 2005, it
claimed deduction thereof under section 54EC of the Act. The AO was,
however, of the view that the assessee having ... hence assessee is not entitled to
claim deduction under section 54EC of the Act in the year under
consideration. In response to a show cause
further observed that the
assessee has claimed exemption u/s. 54EC of the Act on the ground that
he has invested Rs. 73.50 lakhs ... further proceeded to disallow
the claim of exemption u/s. 54EC of the Act as claimed by the assessee
for investment in NABARD Bonds. According
Income-tax (Appeals) has erred in interpreting the provisions of
section 54EC.
3. As per proviso to Section 54EC the amount allowable for the financial ... allowing relief of Rs. 50,00,000/- thereby allowing deduction u/s.
54EC of Rs. 1,00,00,000/- in one financial year only
Bonds and claimed benefit of
investment u/s 54EC in REC Bonds. AO asked the assessee to show as to how section
54EC exemption ... provisions of section 50 of the Act, the exemption u/s 54EC is not
available to the assessee.
6.1 Assessee relying on the decision
action in restricting the assessee's eligible exemption under
section 54EC of the Act to Rs.50 lakhs as against the assessee ... assessee in this appeal was the restriction of the exemption under
section 54EC of the Act to Rs.50 lakhs by the authorities below
