Investment in NHAI bonds for claiming deduction under
section 54EC made prior to sale of asset but in two financial years - Joint
ownership whether contravenes ownership of any other house to claim deduction under
section 54F
Facts:
Assessee
invested on 31-01-2013 in NHAI bonds for Rs. 50 lakhs. He then transferred
assets subject to capital gains on 28-01-2014 and further invested another Rs.
50 lakhs in NHAI bonds on 31-03-2014 as well and claimed benefit of section
54EC for Rs. 1 crore. The argument was the initial investment on 31-01-2013 was
made out of the advance for the sale of the said capital asset. Besides this he
claimed benefit of reinvestment under section 54F despite being a joint owner
with his family members. on another property. The AO and CIT(A) rejected claim under
section 54EC for Rs. 50 lakhs and also refused the claim of section 54F. On
higher appeal -
Held
in favour of the assessee that he was entitled to the claim of section 54EC as
well as under section 54F. The amendment made in section 54EC is only w.e.f. 01-04-2015.
Benefit of section 54F cannot be denied citing that the assessee was a joint
owner in properties.
Applied:
for
section 54EC
C. Jaichander (2015) 53 taxmann.com 466 (Madras)
: 2014 TaxPub(DT) 4189 (Mad-HC)
Aspi Ginwala & Others v. ACIT (2012) 52 SOT 16 (Ahd-Trib)
: 2012 TaxPub(DT) 1026 (Ahd-Trib)
Smt. Sriram Indubal v. ITO (2013)
32 taxmann.com 118 (Channai - Trib.) : 2013 TaxPub(DT) 1496
(Chen-Trib)
Subhash Vinayak Supnekar (2017)
77 taxmann.com 226 (Bombay) : 2017 TaxPub(DT) 0260 (Bom-HC)
for
section 54F
Khoday Distilleries Ltd. v. Sri Mahadeshwara Sahakara
Sakkare Karkhane Ltd. [Civil Appeal No. 2432/2019, dt. 1-3-2019] : 2019
TaxPub(DT) 2966 (SC)
Smt. Tej Kumari v. CIT (2001) 247 ITR 210 (Patna HC) : 2001 TaxPub(DT) 0654
(Pat-HC)
Dr. (Smt.) P. K. Vasanthi Rangarajan v. CIT (2012)
23 taxmann.com 299 (Mad) : 2012 TaxPub(DT) 2757 (Mad-HC)
Ashok G. Chauhan (2019) 105 taxmann.com 204
(Mumbai - Trib.) : 2019 TaxPub(DT) 2794 (Mum-Trib)
Case: Mukesh
Arvindlal Vakharia v. ITO 2023 TaxPub(DT) 3808 (Srt-Trib)