Om Prakash & Sons(HUF), New Delhi ACIT, Circle-56(1), New Delhi

INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH “E”: NEW DELHI

BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER
A N D
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
(Through Video Conferencing)
ITA. No. 4934/Del/2017
(Assessment Year: 2013-14)

Om Prakash & Sons [HUF]
C – 70, Bathla Apartments,
Patpar Ganj,
New Delhi.
PAN: AAAHO7498G
(Appellant) 

Vs.

ACIT,
Circle 56 (1)
New Delhi
(Respondent)

Assessee by : N o n e;
Revenue by: Ms. Aman Preet, Sr. D.R.;

Date of Hearing 21/12/2020
Date of pronouncement 21/12/2020

O R D E R

PER PRASHANT MAHARISHI, A. M.

1. This appeal is filed by the assessee against the order of the CIT (Appeals)-19, New Delhi, dated 24.05.2017 for Assessment Year 2013-14 wherein the dispute is with respect to the disallowance of deduction under Section 54EC of the Income Tax Act, 1961 (the Act).

2. The brief facts of the case show that assessee is an HUF. It filed its return of income on 27.07.2013 declaring income of Rs.1,50,59,000/-. Out of that sum assessee has earned the Long term capital gain of Rs.1,47,17,750/-. 

3. The assessee has sold property at 483, Village Mauza, Jhilmil Tahirpur, Shahdara, Delhi, for Rs.5.25 crores and Long term capital gain was shownat Rs.4,60,38,523/-. The assessee claimed the deduction under Section 54F of the Act of Rs.2,15,20,774/-. Further assessee purchased REC Bonds of Rs.50,00,000/- in FY 2012-13 and further Rs.50,00,000/- in FY 2013-14 and correspondingly claimed total deduction under Section 54ECof the Act of Rs.1 crore. The ld. Assessing Officer held that the exemption under Section 54EC of the Act is to be restricted to only Rs.50,00,000/- and not Rs. 1crore. The ld. Assessing Officer held that Finance Act, 2014 hasamended Section 54EC wherein it is stated that deduction under Section 54EC cannot exceed Rs. 50,00,000/-. He also relied on the Explanatory note to the provisions of Section 54EC. Thus, the dispute in this appeal is that whether the assessee will get the benefit of deduction under Section 54EC of Rs.1 crore or only Rs.50,00,000/-. On appeal before the ld. CIT (Appeals) the action of the ld. Assessing Officer is sustained. Therefore, assessee is in appeal before us.

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