Popatlal N Vora Inheritance Trsut, Ahmedabad V. The Income tax Officer,Ward-10(4), Ahmedabad

ITA 2365/AHD/2010

• Counselvise Citation: 236520514 RSA 2010
• Duration Of Justice: 3 year(s) 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 25-10-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 20-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BATHEJA
• Keywords: Capital asset; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEMBER ITA NO.2365/AHD/2010 A.Y. 2007-08 POPATLAL N. VORA INHERITANCE TRUST, 15, SADMA SOCIETY, NARANPURA, AHMEDABAD. PAN: AAATP 1532 C VS ITO, WARD 10(4). AHMEDABAD (APPELLANT) (RESPONDENT) REVENUE BY : SHRI O. P. BATHEJA, SR.D.R . ASSESSEE(S) BY : SHRI TUSHAR P. HEMANI, A.R. / DATE OF HEARING : 25/10/2013 / DATE OF PRONOUNCEMENT: 22/11/2013 / O R D E R PER SHRI MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE ARISING FRO M AN ORDER OF LEARNED CIT(APPEALS)-XVI, AHMEDABAD, DATED 17.05.20 10. THE GROUNDS WHICH ARE ARGUED BEFORE US ARE REPRODUCED BELOW: THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN CON FIRMING THE ACTION OF LD. AO IN DISALLOWING DEDUCTION OF RS.87,29,080/- U/S. 54EC OF THE ACT IN THE HANDS OF APPELLANT TRUST. ALTERNATIVELY AND WITHOUT PREJUDICE, IF THE CLAIM O F DEDUCTION IN THE HANDS OF THE APPELLANT TRUST IS NOT GRANTED, THE SAID DEDUCT ION MAY BE DIRECTED TO BE GRANTED IN THE HANDS OF THE INDIVIDUAL BENEFICIARIE S OF THE APPELLANT TRUST. 2. FACTS IN BRIEF AS EMERGED FROM THE CORRESPONDING ASSESSMENT ORDER PASSED U/S. 143(3), DATED 1.12.2009 WERE THAT THE A SSESSEE IS A TRUST AND DURING THE YEAR DISCLOSED A CAPITAL GAIN OF RS.87,2 9,080/-. IT WAS INFORMED THAT THE ASSESSEE HAD INVESTED A SUM OF RS .1,12,00,000/- IN ITA NO.2365/ AHD/2010 POPATLAL N. VORA INHERITANCE TRUST VS. ITO AHMEDABA D. FOR A.Y. 2007-08 - 2 - RURAL ELECTRIFICATION CORPORATION LTD. ON THE SAID INVESTMENT, THE ASSESSEE HAD CLAIMED EXEMPTION U/S. 54EC. A BUILDIN G WAS OWNED BY THE TRUST WHICH WAS SOLD FOR A CONSIDERATION OF RS.2,05 ,00,000/-. THE REC BONDS WERE PURCHASED IN THE NAME OF THE FOLLOWING P ERSONS: NAME OF HOUSEHOLDER DATE OF INVESTMENT NO. OF BONDS UNIT PRICE TOTAL AMOUNT PRAFULCHANDRA P VORA & INDUMATE P. VORA 18.5.2007 280 10,000 28,00,000 SHANTILAL POPATLAL VORA & UDAY SHANTILAL VORA 18.5.2007 280 10,000 28,00,000 SAVITA JAYANTILAL VORA 18.5.2007 280 10,000 28,00,000 KRUNAL J VORA & RANJAN 18.5.2007 280 10,000 28,00,000 TOTAL 1,12,00,000 3. AS PER AO, THE SAID INVESTMENT WAS NOT QUALIFIED FOR DEDUCTION U/S. 54 EC BECAUSE THE SAID SPECIFIED ASSET WAS N OT PURCHASED IN THE NAME OF THE ASSESSEE. THE EXEMPTION U/S. 54 EC WAS DENIED; HENCE AN APPEAL WAS PREFERRED. 4. BEFORE LEARNED CIT(A), ASSESSEE HAS EXPLAINED TH E FACTS OF THE CASE AS UNDER: 4.1 LATE SHRI POPATLAL N. VORA DIED IN MUMBAI ON 21/07/ 1990. LATE SHRI POPATLAL N. VORA HAD EXECUTED WILL ON 15/03/1980. L ATE SHRI POPATLAL N. VORA OWNED PROPERTIES AND ASSETS WHICH AS PER HIS W ILL DATED 15-3-1980 WERE FOR THE BENEFIT OF HIS DAUGHTER-IN-LAWS AND SON OF THESE DAUGHTER-IN-LAWS. IN EXECUTION OF THE POWERS, THE THEN EXECUTOR ON 24-2- 1992 EXECUTED A DISCRETIONARY TRUST TO HOLD AND ADMINISTER THE PROP ERTIES AND ASSETS OF LATE SHRI POPATLAL N. VORA. POPATLAL N. VORA INHERITANCE TRUST WAS SETTLED ON 24/02/1992 PURSUANT TO AND IN ACCORDANCE WITH DIREC TIONS IN WILL OF LATE SHRI POPATLAL N. VORA. ON 31-12-2003 IMMOVABLE PROPERTY HAVING LAND ADMEAS URING 10890 SQ. FT. I.E. 1011.71 SQ. MTS. AND SUPER STRUCTURE CONSISTIN G OF GROUND, FIRST AND SECOND FLOORS, WITH TENANTS IN POSSESSION, WAS TRANSFERRED IN THE NAME OF FOUR SONS S/SHRI JAYANTILAL P. VORA, SHANTILAL P. VORA, PRAFU LCHANDRA P. VORA AND ITA NO.2365/ AHD/2010 POPATLAL N. VORA INHERITANCE TRUST VS. ITO AHMEDABA D. FOR A.Y. 2007-08 - 3 - PRAVINCHANDRA P. VORA. THE PROPERTY IN THE REVENUE RECORDS WAS TRANSFERRED IN FAVOUR OF FOUR TRUSTEE- SONS AND LEGAL HEIRS OF LATE SHRI POPATLAL N. VORA. THEY WERE TRUSTEES OF POPATLAL N. VORA INHERITANCE TRUST. LATE SHRI JAYANTILAL POPATLAL VORA WHO WAS A TRUSTEE OF POPATLAL N. VORA INHERITANCE TRUST EXPIRED ON 29/12/2000. SMT. SAVITA JAYANTILAL VORA WAS APPOINTED AS TRUSTEE OF THE TRUST IN THE PLACE OF LATE JAYANTILAL POPATL AL VORA. THE TRUSTEES DECIDED TO SELL THE PROPERTY WHICH WAS FULLY TENANTED PROPERTY AND DISTRIBUTE THE PROCEEDS RECEIVED ON SALE OF IMM OVABLE PROPERTY. THE TRUSTEES ENTERED INTO MEMORANDUM OF UNDERSTANDI NG (MOU) FOR SALE OF 'VORA BUILDING PROPERTY' ON 10/06/2006 WITH HILLTOP ESTATES PVT. LTD. ON 29/09/2006 SALE DEED WAS EXECUTED BETWEEN SHRI P RAFULCHANDRA POPATLAL VORA, SHRI S. P. VORA, SHRI PRAVINCHANDRA P. VORA A ND SMT. SAVITA JAYANTILAL VORA, TRUSTEES OF POPATLAL N. VORA INHERITANCE TRUS T AND HILLTOP CONSULTANTS PVT. LTD. (EARLIER KNOWN AS HILLTOP ESTATES PVT. LT D.), A PRIVATE LIMITED COMPANY. THE SAID SALE DEED WAS REGISTERED WITH THE REGISTRARS, ANDHERI, MUMBAI. THE TRUST HAVING RECEIVED SALE PROCEEDS OF RS.205 L ACS, DEPOSITED THEM WITH BANK OF INDIA IN FIXED DEPOSITS AS THE DISTRIBUTION OF CORPUS OF TRUST HAD NOT TAKEN PLACE. THE INVESTMENT IN SPECIFIED SECURITIES U/S. 54EC OF THE ACT COULD NOT BE MADE AS NEW SERIES OF BONDS WERE NOT ANNOUNC ED. AS SOON AS BONDS WERE AVAILABLE, THE TRUST LIQUIDATED THE FIXED DEPO SITS CREDITED THE SALE PROCEEDS TO THE BANK ACCOUNT OF THE TRUST WITH BANK OF INDIA, SION BRANCH, MUMBAI. EACH OF THE TRUSTEE WAS GIVEN RS.28 LACS. RS. 28 LA CS WERE TRANSFERRED FROM BANK OF INDIA A/C OF THE TRUST, TO THE BANK OF INDI A A/CS OF SHRI PRAFULCHANDRA P. VORA AND SHRI SHANTILAL POPATLAL VORA. RS.56 LAC S BY FOUR CHEQUES WERE TRANSFERRED TO THE TRUSTEE SHRI PRAFULCHANDRA P. VO RA'S HDFC BANK A/C NO.00131006203124 AND RS.28 LACS EACH (RS.25 LACS + RS.3 LACS) TRANSFERRED TO TRUSTEES AND BENEFICIARY (I) SMT. SAVITABEN JAYA NTILAL VORA AND (II) BENEFICIARY SMT. RANJANBEN P. O VORA. IMMEDIATELY, ON RECEIPT OF THESE FUNDS THESE TRUSTEES/BENEFICIARIES INVESTED THESE AMOUNTS IN REC BONDS. ENTRIES ARE REFLECTED INTO FOLLOWING ACCOUNTS. XER OX COPIES OF THESE BANK STATEMENTS ARE ENCLOSED IN PAPER BOOK. A) RECEIPT AND DEPOSIT OF SALE PROCEEDS OF 'VORA BUILDING PROPERTY' INTO BANK ACCOUNT OF POPATLAL N. VORA INHERITANCE TRUST - BANK OF INDIA A/C NO. 004120100012771 SION BRANCH, AHMEDABAD, PLEASE SEE PAGE NOS. 20-24 OF PAPER BOOK. B) TRANSFER OF RS.28 LACS WAS MADE TO EACH TRUST EE/BENEFICIARY BY ISSUE OF CHEQUES IN JANUARY, 2007 AND FIRST WEEK OF FEBRUARY , 2007. THESE AMOUNTS IN ITA NO.2365/ AHD/2010 POPATLAL N. VORA INHERITANCE TRUST VS. ITO AHMEDABA D. FOR A.Y. 2007-08 - 4 - TURN WERE TRANSFERRED TO THE BANK ACCOUNT OF THE TR USTEES/BENEFICIARIES FROM RESPECTIVE BANK ACCOUNT OF THE TRUSTEES/BENEFICIARI ES. INVESTMENT ON THE NEXT DAY WAS MADE INTO SPECIFIED SECURITIES I.E. REC BON DS FOR DEDUCTION U/S.54EC OF THE IT ACT. PLEASE REFER PAGE NOS.40-81 OF PAPER BOOK. 4.1. THE ASSESSEE HAS ALSO EXPLAINED THE REASON FOR NOT MAKING THE INVESTMENT IN THE NAME OF THE TRUST AS FOLLOWS: IT IS FURTHER SUBMITTED THAT THE APPELLANT TRUST C OULD NOT HAVE MADE INVESTMENTS IN THE NAME OF APPELLANT TRUST ON ACCOU NT O CERTAIN CLAUSES IN THE TRUST DEED. LATE SHRI POPATLAL N. VORA HAD EXECUTED WILL ON 15.03.1980. LATE POPATLAL N. VORA OWNED PROPERTIES AND ASSETS W HICH AS PER HIS WILL DATED 15.3.1980 WERE FOR THE BENEFIT OF HIS DAUGHTE R-IN-LAWS AND SON OF THESE DAUGHTER-IN-LAWS. IN EXECUTION OF THE POWERS, THE T HEN EXECUTOR ON 24.2.1992 EXECUTED A DISCRETIONARY TRUST TO HOLD AND ADMINIST ER THE PROPERTIES AND ASSETS OF LATE SHRI POPATLAL N. VORA. POPATLAL N. V ORA INHERITANCE TRUST WAS SETTLED ON 24.02.1992 PURSUANT TO AND IN ACCORDANCE WITH DIRECTIONS IN WILL OF LATE SHRI POPATLAL N. VORA CLAUSE 3.5 OF THE SAID T RUST DEED PROVIDES THAT THE PERIOD OF DISTRIBUTION OF THE CORPUS OF THE TRUST S HALL BE THE PERIOD OF 18 YEARS FROM THE DATE OF SHRI POPATLAL N. VORA SHRI POPATLA L N. VORA DIED ON 21.07.1990 AND THEREFORE THE CORPUS OF THE TRUST IS REQUIRED TO BE DISTRIBUTED AND SETTLED ON THE EXPIRY OF 18 YEARS FROM THE DATE 21.07.1990 WHICH IS 20.07.2008. COPY OF TRUST DEED IS ENCLOSED IN PAPER BOOK FOR ADDITIONAL EVIDENCES AT PAGE NOS. 21-31. THE APPELLANT TRUST S OLD THE PROPERTY ON 29.09.2006 AND THE INVESTMENT IN THE BONDS OF REC W AS REQUIRED TO BE MADE WITHIN 60 MONTHS OF THE EXPIRY OF THE FINANCIAL YEA R IN WHICH THE CAPITAL ASSETS IS SOLD, I.E. 30.09.2007. IT IS THE REQUIREMENT OF THE PROVISIONS OF SECTION 54EC THAT THE INVESTMENT IN THE BONDS OF REC HAS TO BE M ADE FOR MINIMUM PERIOD OF 3 YEARS. PRESUMING THAT THE INVESTMENT COULD HAVE B EEN IN THE NAME OF APPELLANT TRUST THEN THE FUNDS FROM THE REC BONDS W OULD HAVE REALIZED FROM THE 3 YEARS FROM THE DATE OF INVESTMENTS WHICH WOUL D HAVE BEEN AFTER THE PERIOD OF DATE OF VESTING OF CORPUS OF THE TRUST TO THE BENEFICIARIES AND THEREFORE THE APPELLANT TRUST COULD NOT HAVE BEEN A BLE TO DISTRIBUTE THE CORPUS OF THE TRUST COULD NOT HAVE BEEN ABLE TO DISTRIBUTE THE CORPUS OF THE TRUST ON THE VESTING DATE I.E. 20.07.2008 FOR WHICH THE TRUS T WAS CREATED. THEREFORE, THE INVESTMENTS WERE MADE IN THE NAME OF THE TRUSTE ES/BENEFICIARIES AND NOT IN THE NAME OF THE APPELLANT TRUST. 4.2 HOWEVER, LEARNED CIT(A) WAS NOT CONVINCED AND H E HAS HELD THAT THE INVESTMENT IN REC BOND WAS MADE IN THE NAME OF THE TRUSTEES AND NOT IN THE NAME OF THE BENEFICIARIES; HENCE, THE DE DUCTION U/S.54EC WAS RIGHTLY DENIED BY THE AO. BEING AGGRIEVED, THE ASSE SSEE IS FURTHER IN APPEAL. ITA NO.2365/ AHD/2010 POPATLAL N. VORA INHERITANCE TRUST VS. ITO AHMEDABA D. FOR A.Y. 2007-08 - 5 - 5. WE HAVE HEARD BOTH THE SIDES. WE HAVE PERUSED TH E MATERIAL PLACED BEFORE US. AT THE OUTSET, WE HAVE BEEN INFOR MED THAT THE TRUSTEES ARE THE SONS AND THE BENEFICIARIES ARE THE DAUGHTER -IN-LAWS OR THE GRANDSONS OF THE SETTLERS. THE DETAILS OF THE TRUST EES AND BENEFICIARIES IS AS UNDER: TRUSTESS BENEFICIARIES 1. SHRI JAYANTILAL P. VORA A. SAVITABEN J. VORA B. KRUNAL J. VORA 2. SHRI SHANTILAL P. VORA C. SHARDABEN S. VORA D. UDAY S. VORA 3. SHRI PRAFULCHANDAR P. VORA E. INDUMATIBEN P. VOR A 4. SHRI PRAVINCHANDRA P. VORA F. RANJANBEN P. VORA 5.1 WE HAVE BEEN INFORMED THAT LATE P.N. VORA HAD E XECUTED A WILL ON 15.3.1980. THAT WILL WAS FOR THE BENEFIT OF THE DAUGHTER-IN-LAWS AND GRANDSONS. IN EXECUTION OF POWERS; THE EXECUTOR HAS EXECUTED A DISCRETIONARY TRUST. AS PER ONE OF THE CLAUSE OF TH E TRUST DEED, THE PERIOD OF DISTRIBUTION OF THE CORPUS OF THE TRUST WAS 18 Y EARS FROM THE DATE OF THE DEATH OF LATE P.N. VORA, WHO DIED ON 21.7.1990. THE REFORE, THE CORPUS OF THE TRUST WAS REQUIRED TO BE DISTRIBUTED ON THE EXP IRY OF 18 YEARS WHICH WAS UP TO 20 TH OF JULY, 2008. THE ASSESSEE HAS FURNISHED THE REQU ISITE TRUST DEED, ETC. BEFORE THE LOWER AUTHORITIES AS WELL AS IN THE COMPILATION BEFORE US. THE ASSESSEE TRUST HAD SOLD THE PROPERTY ON 29 TH OF SEPTEMBER, 2006 AND THE INVESTMENT IN REC BOND WAS REQUIRED TO BE MADE WITHIN SIX MONTHS OF THE EXPIRY OF THE FINANCIAL YEAR IN WHICH THE CAPITAL ASSET WAS SOLD, WHICH WAS UP TO 30 TH OF SEPTEMBER, 2007. THE MINIMUM PERIOD FOR INVESTMENT AS PRESCRIBED U/S.54 EC WAS THREE YEARS. SINCE, THE LOCKIN PERIOD OF THREE YEARS WAS BEYOND THE PERIOD OF 18 Y EARS AND THE DATE OF ITA NO.2365/ AHD/2010 POPATLAL N. VORA INHERITANCE TRUST VS. ITO AHMEDABA D. FOR A.Y. 2007-08 - 6 - VESTING OF THE CORPUS OF THE TRUST WAS 20 TH OF JULY, 2008, THEREFORE, IT WAS DECIDED THAT THE INVESTMENT WAS TO BE MADE IN THE N AME OF THE BENEFICIARIES OR THE TRUSTEES. 6. WITH THIS FACTUAL BACKGROUND, WE HAVE CONSIDERED FEW CASE LAWS, NAMELY, JCIT VS. SMT. ARMEDA K. BHAYA, 95 ITD 313 (MUM.), I TO VS. SMT. SARASWATI RAMANATHAN, 116 ITD 234 (DEL.), 3 RD ITO VS. VARDARJAN, 33 TTJ 466 (MAD.) AND CIT VS. KAMAL WAHA L, 351 ITR PAGE 4 (DEL.) . IN ONE OF THE CASE, NAMELY, SMT. SARASWATI RAMANTHAN (SUPRA) , IT WAS HELD AS UNDER: THE CIT(A) HAS FURTHER NOTED THAT THE ASSESSEE WAS 69 YEARS OLD AT THE RELEVANT TIME AND IT WAS ONLY A MATTER OF CONVENIEN CE AND TO AVOID ANY PROBLEM IN FUTURE THAT THE SONS NAME WAS INCLUDED. WHILE AVAILING OF THE EXEMPTIONS UNDER THE ACT OF THE NATURE OF SECTION 5 4EC, IT IS BETTER TO REMEMBER THAT THE ASSESSEE IS REQUIRED TO MAKE AN I NVESTMENT. IN DOING SO, THE ASSESSEE MUST BE ACCORDED THE FREEDOM TO BE PRA CTICAL AND WISE. NORMALLY, WHEN AN INVESTMENT IS MADE, PARTICULARLY IF IT IS MADE BY A PERSON OF ADVANCED AGE, PRECAUTIONS ARE TAKEN TO INCLUDE A NOTHER NAME THE NAME OF A MUCH YOUNGER PERSON, PREFERABLY A HEIR (MAY BE SPOU SE OR CHILDREN) IS INCLUDED SO THAT NO PROBLEMS ARISE IN FUTURE IN CAS E THE PERSON INVESTING DIES. IT IS QUITE COMMON TO FIND A PERSON INVESTING IN A HOUSE TO INCLUDE THE NAME OF THE SPOUSE AS A JOINT NAME. EVEN IN CASE OF FINANCI AL ASSETS SUCH AS BANK DEPOSITS IT IS QUITE COMMON TO FIND PEOPLE INVESTIN G IN JOINT NAMES, MORE OFTEN INCLUDING THE NAME OF THE SPOUSE OR CHILDREN. THE O BJECT IN DOING SO IS MERELY TO AVOID ANY PROBLEM IN FUTURE IN CASE ANYTHING UNT OWARD SHOULD HAPPEN TO THE INVESTOR. I FIND IT DIFFICULT TO IMAGINE THAT I T WOULD HAVE BEEN THE INTENTION OF THE ACT TO PLACE RESTRICTIONS ON SUCH FREEDOMS G IVEN TO THE CITIZENS OF THE COUNTRY OR ON THEIR RIGHT TO TAKE SUCH PRECAUTIONS IN THE INTERESTS OF A SECURE FUTURE. INCOME-TAX IS ONLY ONE ASPECT OF LIFE, AND THAT TOO FOR A MINUSCULE PART OF THE CITIZENS OF THIS COUNTRY; WHILE EVERYONE IS GIVEN THE FREEDOM TO MAKE INVESTMENTS IN ANY NAME HE LIKES, THERE IS NO REASO N WHY SUCH FREEDOM SHOULD BE TAKEN AWAY IN THE CASE OF INCOME-TAX ASSESSEES, WHEN THE SUBSTANTIAL INGREDIENTS OF THE SECTION ARE COMPLIED WITH AND TH E SALE PROCEEDS OF THE CAPITAL ASSET ARE CHANNELED INTO THE ASSETS IN THE NATIONAL INTEREST WHICH IS THE MAIN AND VITAL REQUIREMENT OF THE SECTION. IN ANY C ASE, THE PROVISIONS OF THE ACT CANNOT BE INTERPRETED IN AN UNREASONABLE MANNER , FOR, TAX LAWS LIKE ALL OTHER LAWS, HAVE TO INTERPRETED REASONABLY AND IN C ONSONANCE WITH JUSTICE AS HELD BY HIS LORDSHIP JUSTICE K.S. HEGDE, SPEAKING F OR THE SUPREME COURT IN R. B. JODHA MAL KUTHIALA V. CIT [1971] 82 ITR 570; AGAIN HIS LORDSHIP OBSERVED IN CGT V. N.S. GETTI CHETTAIR [1971] 82 IT R 599 (SC) THAT: WORDS ITA NO.2365/ AHD/2010 POPATLAL N. VORA INHERITANCE TRUST VS. ITO AHMEDABA D. FOR A.Y. 2007-08 - 7 - IN A STATUTE ARE NOT TO BE INTERPRETED BY HAVING TH OSE WORDS IN ONE HAND AND THE DICTIONARY IN THE OTHER. IN SPELLING OUT THE ME ANING OF THE WORDS IN A SECTION, ONE MUST TAKE INTO CONSIDERATION THE SETTI NG IN WHICH THOSE TERMS ARE USED AND THE PURPOSE THEY ARE INTENDED TO SERVE. F URTHER IT IS A WELL-SETTLED RULE OF INTERPRETATION IN INCOME-TAX LAW THAT A BEN EFICIAL SECTION HAS TO BE CONSTRUED LIBERALLY, HAVING DUE REGARD TO THE OBJEC T WHICH IT INTENDS TO SERVE. THE ASSESSING OFFICER HAS INTERPRETED THE WORD INV ESTED IN SECTION 54EC TO MEAN INVESTED IN THE ASSESSEES NAME, AN APPROACH WHICH HAS NO JUSTIFICATION AS IT ADDS WORDS INTO THE SECTION AND ALSO IGNORES THE PURPOSE WHICH THE SECTION IS INTENDED TO SERVE. 5. FOR THE ABOVE REASONS, I AGREE WITH THE VIEW TAK EN BY THE CIT(A) THAT THE ASSESSEE IS ELIGIBLE FOR THE EXEMPTION UNDER SECTIO N 54EC. I FURTHER FIND THAT THE MUMBAI BENCH, ITAT HAS HELD IN THE CASE OF JT. CIT V. SMT. ARMEDA K. BHAYA [2005] 95 ITD 313 THAT FOR THE PURPOSE OF SEC TION 54 OF THE ACT, IT IS SUFFICIENT COMPLIANCE WITH THE SECTION THAT THE ASS ESSEE PURCHASED THE NEW FLAT IN THE NAMES OF HIMSELF, HIS FATHER AND MOTHER AND THAT IT WAS NOT THE REQUIREMENT OF THE SECTION THAT THE NEW FLAT SHOULD BE IN THE ASSESSEES EXCLUSIVE NAME. IT WAS HELD THAT THE MAIN CONDITION OF THE SECTION WAS THAT THE SALE CONSIDERATION SHOULD BE INVESTED IN THE NEW HO USE. I RESPECTFULLY FOLLOW THE RATION OF THE ABOVE DECISION. I ACCORDINGLY CON FIRM HIS ORDER AND DISMISS THE APPEAL FILED BY THE REVENUE WITH NO ORDER AS TO COSTS. 6.1 RESPECTFULLY FOLLOWING THE VIEW TAKEN BY THE HO NBLE COURT, WE HEREBY REVERSE THE FINDINGS OF THE AUTHORITIES BELO W AND THEREBY DIRECT TO ALLOW THE CLAIM TO THE ASSESSEE. THE GROUNDS ARE AL LOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. SD/- SD/- (T.R. MEENA) (MUKUL KR. SHRAWAT) ACCOUNTANT MEMBER JUD ICIAL MEMBER AHMEDABAD; DATED /11/2013 PRABHAT KR. KESARWANI, SR. P.S. TRUE COPY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A)-III, AHMEDABAD ITA NO.2365/ AHD/2010 POPATLAL N. VORA INHERITANCE TRUST VS. ITO AHMEDABA D. FOR A.Y. 2007-08 - 8 - 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE. / BY ORDER, / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD