54ec deduction

This query is : Resolved

Guest

Guest (Querist)

27 November 2015 The assessee had invested in Rs 50Lakh on 12/3/13 and rs 12 Lakh on 3/4/13 both within 6 months of sale of flat to claim deduction u/s 54EC.(AY 2013-14)
The case was selected for scrutiny under CASS.
rs 12 Lakh deduction was disallowed.

The client was duly represented and since the amendment in section 54Ec was not retrospective and well supported by judgments (ITO Vs Rania Faleiro and Ramesh D Hariani)the deduction should be allowed.

The assessee has now received an order and notice of demand u/s 156 disallowing the deduction of 12 lakh.
Any suggestions?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 November 2015 The amendment is effective from 01/04/2015 and applicable for AY 2015-16 and subsequent years.
File appeal before CIT appeal you will easily win the case. File stay petitions also.

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