Officer
restricted the exemption to Rs.50 lakhs only in view of the proviso to sub-
section (1) of Section 54EC of the Act inserted ... restricted the exemption to Rs. 50 lakhs only in view of the
proviso to sub-section (1) of sec. 54EC of the Act inserted
invested in NHAI/REC Bonds on 26-03-2009 and exemption
u/s 54EC of 1961 Act was claimed by the assessee. The date ... Section 54EC of 1961 Act is a beneficial section which allows exemption
against long term capital gains earned by tax-payer on transfer of original
Therefore, according to
AO, the claim of exemption u/s. 54EC of the Act for purchasing of bond on 03.06.2009 was
erroneous since the same ... Section 2(42A) of the Act and therefore
gain derived on such sale was not entitled either for exemption u/s 54EC or concessional
specified
assets as required under section 54EC of the Act. For application of
section 54EC of the Act the necessary pre-requisite condition and
enquiry ... Section
54EC of the Act cannot be denied by referring to the fiction created
under Section 50 of the Act. Benefit of Section 54EC
submission and case law which were squarely not applicable on Section
54EC . Section 54EC clearly states that the investment in specified bond ... transfer.....".. In
Section 54 and 54F which are adjacent to the Section 54EC , no such
provision has been made. The Section
disallowed the claim of exemption by stating as under:-
Disallowance of claim for exemption u/s. 54EC :
" 15. It is pertinent to note that ... gain had taken exemption of Rs. 40,00,000/- U/s. 54 EC Of the
Income Tax Act, 1961 . Section 54EC of the Income
lacs u/s
54EC of the Act. The investment in REC Bonds was within time limit
of 6 months prescribed in Section 54EC ... section (2) of Sec. 119 , hereby orders that the limitation of six
months for making the investment under section 54EC of capital gains
arising from
Section 54EC , read with section 50 , of the Income-tax Act, 1961 - Capital
gains - Not to be charged on investment in certain bonds [ Section 54EC ... term capital gain
was offered by assessee under section 50 and disallowed exemption under
section 54EC claimed by assessee on ground that same
plain reading of provisions of Section 54EC , it is evident
that capital gain shall be exempt u/s 54EC only to the extent ... purpose of allowance of
exemption u/s 54EC , it will vitiate the original intent of legislature
Provisions of Section 54EC cannot be interpreted in such
section (2) of section 119 of the Income-tax Act, 1961, ordered that the limitation of
six months for making the investment under section 54EC ... claimed exemption under section 54 of the IT Act.
Subsequently, the assessee invested an amount of Rs.49,63,932/- under section 54EC
