Exemption under sec 54G subject to the utilization of amount for the acquisition of asset for the purpose of the business witnin the prescribed time limit

Last updated: 06 July 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Briefly stated, assessee filed return of income declaring total income at `1,57,02,407/- mainly consisting of capital gains. Assessee surrendered its tenancy rights and received an amount of `4,12,00,000/-. Out of this amount assessee has invested an amount of `1,40,00,000/- in capital gain Account Scheme and an amount of `1,14,21,000/- was claimed to have been invested in land and building. It claimed deduction under section 54G of the amount of `2,54,21,000/- and offered the balance amount as taxable income. It was AO’s contention that assessee sold its entire Plant & Machinery in financial year 1999-2000 and since there is no existence of an undertaking, having sold the entire Plant & Machinery, the claim under section 54G, which provides for exemption for shifting of industrial undertaking from urban area to other than urban area is not eligible to assessee. He made elaborate discussion on this issue vide Para 7 of the order and did not allow the deduction to assessee.

Citation :
Dy. Commissioner of Income Tax- 8(1) Room No.210 Aayakar Bhavan, MK Road (Appellant) Vs Enpro Finance Ltd Block No.502, 5th Floor, Plot CTS No.220/23A Patel Estate Mumbai 400020 Road, Jogeshwari (W) Mumbai 400 102 PAN –AAACE 1146 J (Respondent)