Shri Shashin Manibhai Patel, Ahmedabad V. The ACIT(Intl. Taxn.), Baroda

ITA 3603/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6240 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 23-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: KINJAL V SHAH
• Keywords: Capital asset

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO. 3603/AHD/2015 (ASSESSMENT YEAR: 2011-12) SHRI SHASHIN MANIBHAI PATEL 301, AALAP FLATS (G.F.), 21, PURSHOTTAM NAGAR PRODUCTIVITY ROAD, AKOTA, VADODARA - 390020 APPELLAN T VS. ASST. COMM. OF INCOME TAX, (INTL.TAX), BARODA RESPONDENT PAN: BJXPP8329L /BY ASSESSEE : KINJAL V. SHAH, A.R. /BY REVENUE : SHRI PRASOON KABRA, SR. D.R /DATE OF HEARING : 04.01.2018 /DATE OF PRONOUNCEMENT : 08.01.2018 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2011-12, ARISES AGAINST THE CIT(A)-13, AHMEDABADS ORDER DATED 29.10.2015, IN C ASE NO. CIT(A)- 13/AHD/152/2014-15, UPHOLDING ASSESSING OFFICERS A CTION RESTRICTING SECTION 54EC DEDUCTION CLAIM OF RS.50LACS EACH INVESTED ON 30.11.2010 AND 13.04.2011 TOTALING TO RS.1CRORE TO RS.50LACS ONLY, IN PROCEED INGS U/S.143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961, HEREINAFTER THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. ITA NO. 3603/AHD/2015 (SHRI SHASHIN MANIBHAI PATEL VS. ACIT) A.Y. 2011-12 - 2 - 2. RELEVANT FACTS ARE IN A VERY NARROW COMPASS. TH IS ASSESSEE JOINTLY SOLD THE CAPITAL ASSET IN QUESTION IN THE RELEVANT PREVIOUS YEAR ON 26.10.2010 FOR RS.6,60,00,000/-. HIS 1/3 RD SHARE THEREIN WAS OF RS.2,20,00,000/-. HE THEREAF TER INVESTED RS.1CRORE (SUPRA) IN NHAI BONDS TO CLAIM S ECTION 54EC DEDUCTION. BOTH THE LOWER AUTHORITIES DECLINED THE SAME ON THE GROU ND THAT THE SAID STATUTORY PROVISION CAPS THE RE-INVESTMENT AMOUNT TO RS.50LAC S ONLY. THEY THEREFORE RESTRICT ASSESSEES CLAIM TO RS.50LACS TO DISALLOW THE REMAI NING EQUAL AMOUNT. WE FIND NO FORCE IN THIS APPROACH. HONBLE MADRAS HIGH COURT S JUDGMENT IN CIT VS. C. JAICHANDER (2015) 370 ITR 579 (MADRAS) HAS ADMITTED LY UPHELD A CO-ORDINATE BENCHS DECISION THAT SUCH A DEDUCTION CLAIM OF RS .50 LACS EACH SPREAD OVER TO TWO FINANCIAL YEARS BUT FALLING WITHIN SIX MONTHS OF TH E CAPITAL ASSETS TRANSFER IN QUESTION IS VERY MUCH ALLOWABLE. WE FURTHER TAKE N OT OF THE FACT THAT THE LEGISLATURE HAS INSERTED SECOND PROVISO TO SECTION 54EC (1) INTRODUCING THE ABOVE CAP ON RE-INVESTMENT QUANTUM BY THE FINANCE (ACT NO .2), 2014 W.E.F. 01.04.2015 WHEREAS WE ARE DEALING WITH ASSESSMENT YEAR 2011-12 . THIS IS NOT THE REVENUES CASE THAT THE ABOVE AMENDMENT CARRIES ANY RETROSPEC TIVE OPERATION. WE THEREFORE REJECT MR. KABRAS VEHEMENT CONTENTIONS SUPPORTING THE IMPUGNED DISALLOWANCE. THE ASSESSEES SOLE SUBSTANTIVE GROUND IS ACCEPTED. 5. THIS ASSESSEES APPEAL IS ALLOWED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 8 TH DAY OF JANUARY, 2018.] SD/- SD/- (AMARJIT SINGH) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER AHMEDABAD: DATED 08/01/2018 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / ITA NO. 3603/AHD/2015 (SHRI SHASHIN MANIBHAI PATEL VS. ACIT) A.Y. 2011-12 - 3 - DR, ITAT, AHMEDABAD 1 +23 45 / GUARD FILE. BY ORDER / . // . /0