Taxpublishers.in - InterestingDecision/IDDTF_174.htm - Tax Publishers Your Tax Solution Hub

Share via Whatsapp 82 Views


Tax Publishers 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)

Tax Publishers

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)