upholding the order of
Assessing Officer on denying the exemption u/s.54EC of the Act
investment in REC capital gains bonds falling ... complied with the provisions of
:- 3 -: ITA No.2254/Mds /2015.
Sec.54EC as investment was made within the period of six months
from
After making investment
in specified bonds, deduction u/s. 54EC was claimed for Rs. 4,70,20,482. The
assessment ... Return of income.
Moreover, the investment in REC bond u/s. 54EC was disclosed vide Note
No.3 of return of income. The appellant
upholding the order of
Assessing Officer on denying the exemption u/s.54EC of the Act
investment in REC capital gains bonds falling ... assessee filed explanations that
assessee has complied with the provisions of Sec.54EC of the Act and
investments are made within a period
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 ... also hold that the assessee is entitled to the
exemption u/s 54EC as claimed. Thus both grounds Nos. 2 and 3
are allowed
various grounds of appeal against the
allowing exemption under section 54EC amounting to Rs.50 lakhs by the
ld.CIT(A) as disallowed ... securities and also claimed exemption of Rs.50 lakhs under
section 54EC of the Act qua the investment in bonds of Rural Electric
Bonds
income other than
Capital gain and disallowing the exemption u/s 54EC of the I.T.
Act."
3. The Brief facts of the case ... House Property and the
AO has erroneously allowed the exemption u/s 54EC of the Act. Hence, in
view of the CIT, assessment order dated
Floor, New Friends Colony, New Delhi,
deduction u/s 54EC and set off of brought forward losses
against long term capital gains had been settled ... that the assessee had claimed deduction u/s. 54EC which was
wrongly been allowed. Accordingly, the proceedings u/s. 147 / 148 of
the Act were
Tribunal in
respect of investment of Long Term Capital Gains u/s.54EC of the Act
in Capital Gain bonds falling in two financial years ... assessee has
invested Long term capital gain to claim exemption u/s.54EC and
concluded that investment in Capital Gain Bonds by an assessee
made on account of disallowance claim of deduction u/s
54EC of the Act.
3. The CIT(A) failed to appreciate the fact that under ... provisions of
section 54EC of the Act, six months period is to be reckoned from the date
of transfer of such assets and no from
year and offered long term
capital gain after claiming exemption u/s 54EC and claimed deduction
of Rs. 54,00,000/- on account of compensation ... held that asset is short term capital asset. Hence, exemption u/s
54EC will not be allowed. The AO also disallowed the claim of
compensation
