INCOME TAX ACT, 1961

Section 54EC

Capital gains - Deduction under section 54EC - Whether disallowance of claim is justified in a year in which no claim made at all -

Assessees declared long-term capital gains in assessment year 2009-10, since the shares were actually transferred on 11-4-2008 and also claimed deduction under section 54EC. AO held that the transfer of shares has taken place in September, 2007 and hence made disallowance in assessment year 2008-09. Held: Since assessee has not claimed any deduction under section 54EC in assessment year 2008-09, the question of making any disallowance of the said claim does not arise in assessment year 2008-09.

REFERRED :

FAVOUR : In favour of assessee

A.Y. : 2008-09

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