Section 54EC of the Income Tax Act

Income-tax Act, 2025: s.85

Section 54EC of the Income-tax Act, 1961 corresponds to section 85 (Capital gains not to be charged on investment in certain bonds) of the Income-tax Act, 2025.

Read section 85 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 54EC is Sunil Kumar Agarwal v. CIT (372 ITR 83), cited in 159 of the 476 judgments on BharatTax that turn on this section.

Leading authorities on Section 54EC

Sunil Kumar Agarwal v. CIT
372 ITR 83 · 2015 · High Court
159
citing judgments

The Assessing Officer is duty-bound to refer the valuation of property to the Departmental Valuation Officer under Section 50C(2) when an assessee disputes the stamp duty valuation or if there is a discrepancy between the actual sale consideration and the guideline value. This reference is mandatory, even if not explicitly requested by the assessee, to ensure a realistic fair market value and avoid injustice.

DCIT v. Sun Pharmaceutical Ind Ltd.
329 ITR 479 · 2010 · High Court
49
citing judgments

Amortization claimed on capitalized leasehold land, which is reported as an asset in the balance sheet, is an allowable deduction for income-tax purposes.

Gillanders Arbuthnot & Co. Ltd. v. CIT
53 ITR 283 · 1964 · Supreme Court
29
citing judgments

Payment received for refraining from carrying on a competitive business is treated as a capital receipt. High Courts may misinterpret prior Supreme Court judgments like Gillanders Arbuthnot & Co. Ltd. in their decisions.

CIT v. Mewar Oil and General Mills Ltd. (No. 1)
271 ITR 311 · 2004 · High Court
24
citing judgments

Income from a new industrial undertaking cannot be recomputed by setting off carry forward unabsorbed depreciation or depreciation allowance from previous years if there were no carry forward losses from the prior year to be set off against the current year's income.

Surendra Engineering Corporation v. ACIT
86 ITD 121 · 2003 · ITAT
21
citing judgments

Decisions of the Tribunal, including Special Benches, that have followed earlier decisions in the assessee's own case or the case of Hero Exports v. CIT, are binding on coordinate benches, especially when the revenue cannot controvert the findings. This principle of consistency is applied to allow additional grounds of appeal.

CIT v. Project Automobiles
167 ITR 781 · 1987 · High Court
18
citing judgments

Premium paid for obtaining a lease on land is a capital expenditure, even if paid in annual installments.

Mumbai) 3. ITO v. Rasiklal N Satra
98 ITD 335 · 2006 · ITAT
17
citing judgments

The exemption under section 54F(1) of the Income-tax Act, 1961, is available for capital gains arising from the transfer of a long-term capital asset that is not a residential house.

M.J. Siwani v. CIT
53 Taxmann.com 318 · 2015 · Supreme Court
14
citing judgments

The dismissal of a Special Leave Petition (SLP) by the Supreme Court does not, in itself, constitute a judgment affirming the High Court's decision. It signifies that the Supreme Court did not find sufficient grounds to interfere with the High Court's findings.

CIT v. Global Vantedge P. Ltd.
354 ITR 21 · High Court
13
citing judgments

Tribunals need not reproduce the detailed and reasoned findings of the Commissioner of Income-Tax (Appeals) if they concur with the CIT(A)'s view. This procedural rule prevents unnecessary repetition of detailed analysis.

ACIT v. Velayudhaswamy Spinning Mills Pvt. Ltd.
244 Taxmann 58 · 2016 · Supreme Court
12
citing judgments

Judgments on Section 54EC