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| The Tax Publishers2020 TaxPub(DT) 3788 (Bang-Trib) INCOME TAX ACT, 1961
Section 54EC
Where assessee invested Rs. 71 lakhs in section 54EC bonds in two different financial years then he was entitled to deduction under section 54EC in respect of Rs. 71 lakhs because the limit of Rs. 50 lakhs is per financial year.
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Capital gains - Exemption under section 54EC - Investment in two different financial years - Investment made in NHAI bonds--Amount of investment exceeded Rs. 50 lakhs
Assessee had sold a residential property and declared capital gains. Assessee had claimed deduction under section 54EC for investment made in NHAI bonds. Assessee had made application for allotment of bonds worth Rs. 50 lakhs on 21-3-2013 and Rs. 21 lakhs on 17-7-2013. Further, the letter of allotment received from NHAI also reflected the date of allotment at 31-3-2013 and 31-7-2013 respectively. However, the credit of the same was reflected in the Demat account of the assessee on 10-5-2013 and 5-9-2013 respectively. The AO passed an order of assessment under section 143(3) of the Act, wherein he did not give deduction for a sum of Rs. 21 lakhs under section 54EC of the Act. Held: Since assessee had invested Rs. 71 lakhs in two different financial years and within six months from the date of transfer of the capital assets, the limit of Rs. 50 lakhs is per financial year. Hence, the assessee was eligible for deduction of Rs. 71 lakhs under section 54EC of the Act.
Followed:DCIT v. Borkatte Ganapathi Hegde [ ITA No. 964/Bang/2016 (ITAT-BANG), dt. 2-5-2017] : 2017 TaxPub(DT) 4080 (Bang-Trib) Vivek Jairazbhoy v. Dy. CIT (IT) [ITA No. 236/Bang/2012 (ITAT-BANG), dt. 14-12-2012] : 2012 TaxPub(DT) 3445 (Bang-Trib) Relied:ACIT v. Raj Kumar Jain & Sons (HUF) 2012 TaxPub(DT) 1980 (Jp-Trib)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2013-14
IN THE ITAT, BANGALORE BENCH
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