Query on section 54G

Hi,

I am having a query with respect to section 54G. The relevant provision of section 54G has been extracted hereunder:

"54G(1) Subject to the provisions of sub-section (2), where the capital gain arises from the transfer of a capital asset, being machinery or plant or building or land or any rights in building or land used for the purposes of the business of an industrial undertaking situate in an urban area, effected in the course of, or in consequence of, the shifting of such industrial undertaking (hereafter in this section referred to as the original asset) to any area (other than an urban area) and the assessee has within a period of one year before or three years after the date on which the transfer took place,—

          (a)  purchased new machinery or plant for the purposes of business of the industrial undertaking in the area to which the said undertaking is shifted ;

          (b)  acquired building or land or constructed building for the purposes of his business in the said area ;

          (c)  shifted the original asset and transferred the establishment of such undertaking to such area; and

          (d)  incurred expenses on such other purpose as may be specified in a scheme framed by the Central Government for the purposes of this section,

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If the above conditions are satisfied, then the capital gains (if any) arising on such transfer would be dealt as under:

(a) If the expenses incurred for the purposes of (a) to (d) mentioned above is more than gains, gains will not be taxed;

(b) If the expenses incurred for the purposes of (a) to (d) mentioned above is less than gains, exemption to be limited to the expenses.

Now, with this background, my query is as under:

1.  Whether the conditions specified in (a) to (d) above are cumulative or not?

2. Whether company can claim exemption under section 54G under following scenario?

                    A Company is currently in Urban Area. It has purchased land and building in an area other than urban area. Now, company has transferred its undertaking to an area other than urban area. However, it may be noted that the company had purchased the land and building more than 1 years before the date of sale. It may also be noted that the company has acquried Plant and Machinery which is within 1 year before the date when transfer took place.

Awaiting for your comments.

Thanks in advance.

regards,

Pankaj