|CORAM:||Ashwani Taneja (AM), Joginder Singh (JM)|
|CATCH WORDS:||actual payment, capital gains, exemption|
|COUNSEL:||Dr. K. Shivram|
|DATE:||August 28, 2015 (Date of pronouncement)|
|DATE:||February 15, 2016 (Date of publication)|
|FILE:||Click here to download the file in pdf format|
|S. 54EC: The period of "6 months" available for making investment means 6 calendar months & not 180 days. Payment by cheque dates back to date of presentation & not date of encashment|
(i) For purposes of section 54EC, as held by the Special Bench of Ahmedabad bench in the case of Alkaben B. Patel (2014) 148 ITD 31 (Ahd) and M/s. Crucible Trading Co. Pvt. Ltd. in ITA No.5994/Mum/2013 dated 25.02.2015 “6 months” have been interpreted and it is held that the same would mean 6 calendar months and not 180 days.
(ii) As held by the Supreme Court in CIT vs. Ogale Glass Works Ltd. (1954) 25 ITR 529 (SC), in the case of cheques not having been dishonored but having been encashed, the payment related back to the date of the receipt of the cheques and in law the dates of payments were the dates of the delivery of the cheques.