Saurabh Prasannavadan Vakil vs. Income Tax Officer Ward 1(2)(4), Vadodara

Parties Involved

Facts Summary

The assessee, Saurabh Prasannavadan Vakil, had filed his original return of income for the Assessment Year (A.Y.) 2014-15 on 30.07.2014, declaring a total income of Rs.2,19,54,960/-. He subsequently filed a revised return with a total income of Rs.2,24,26,160/-. The assessment was completed on 29.11.2016, resulting in a total income of Rs.2,74,26,160/-, with an addition of Rs.50 Lakhs made on account of excess deduction claimed under Section 54EC of the Income Tax Act, 1961. The assessee filed an appeal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, dated 06.05.2024. The appeal was dismissed by the First Appellate Authority, leading to the current second appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the learned Commissioner of Income Tax (Appeals) erred in confirming the action of the learned Income Tax Officer in disallowing deduction of Rs. 50,00,000 u/s. 54EC of the Income Tax Act, 1961.
• 2. Whether the learned CIT(A) erred in confirming the action of the learned AO in making disallowance of deduction u/s 54EC of Rs. 50,00,000 despite the fact that investment in each financial year does not exceed the prescribed threshold limit.
• 3. Whether the learned CIT(A) erred in confirming the action of the learned AO in restricting the deduction u/s 54EC to Rs. 50 lakhs without appreciating the fact that the investment in bonds was made within six months from date of transfer.
• 4. Whether the learned CIT(A) erred in confirming the action of the learned AO in restricting the deduction u/s 54EC of the Act to Rs. 50 lakhs without appreciating the fact that the second proviso to section 54EC(1) is applicable from 01.04.2015 and does not apply retrospectively.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Harivallabhdas Rajan Ramkrishna vs. ACIT

  Ahmedabad bench

• Kusum Sahgal, Through LR Shri Viney Sagar Sahgal Vs. ACIT, Circle-19(2), New Delhi

  Delhi Bench benchAY 2016-17Allowed

• Kishan Lal Vs. The NFAC

  Delhi ‘C’ Bench benchAY 2018-19Allowed

• Vikas Motiram Desai Vs ITO, Ward – 22(3)(5)

• Shankar Mallayya Vasal vs. Income Tax Officer

  Mumbai bench

• Shri Bhaskar Gopichand Gupta Vs. ACIT-9(2)(1)

  Mumbai bench