Harivallabhdas Rajan Ramkrishna vs. ACIT

Parties Involved

Facts Summary

The assessee had filed his return of income for A.Y. 2012-13 on 26.07.2012 declaring total income of Rs.6,13,82,049/-. The original assessment was completed on 31.12.2014 on total income of Rs.6,23,19,924/-. The case was reopened u/s.147 of the Act for the reason that assessee had claimed exemption u/s.54EC of the Act, which was not found in accordance with the provisions of the Act. The re-assessment was completed on 08.12.2019 at total income of Rs.6,72,70,700/-, wherein addition of Rs.50 Lakhs was made on account of excess exemption claimed u/s.54EC of the Act. The assessee filed an appeal before the First Appellate Authority, which was dismissed by the CIT(A). The assessee then filed a second appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the assessee was eligible for deduction of Rs. 1 Crore as claimed u/s.54EC of the Act.
• 2. Whether the addition of Rs.50 Lakhs on account of excess exemption u/s.54EC of the Act was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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