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

Ashok Ganeshlal Mundra, Mumbai vs. ITO 3(1)(1), Mumbai

In the result, the appeal of the assessee is partly allowed

ITA 3866/MUM/2023[2018-19]Status: DisposedITAT Mumbai15 Mar 2024AY 2018-19

Bench: Shri Amarjit Singh & Ms. Kavitha Rajagopal, Ashok Ganeshlal Mundra Vs. Asst. Dir. Of I. Tax Cpc 601, A Wing, Hansa C.H.S (Jao: Ward Mum-W - Ltd. Behind Rameshwar 331(1), Ito, Ward 3(1)(1) Mandir, Jogeshwari (East) Aayakar Bhavan, M.K. Mumbai – 400 060 Road, Mumbai- 400 020 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Abbpm0548H Appellant .. Respondent Appellant By : Ajay Singh & Akshay Pawar Respondent By : Manoj Kumar Sinha Date Of Hearing 05.03.2024 Date Of Pronouncement 15.03.2024 आदेश / O R D E R Per Amarjit Singh (Am): This Appeal Filed By The Assessee Is Directed Against The Order Passed By The Ld. Cit(A) Nfac, Dated 22.09.2023 For A.Y. 2018-19. The Assessee Has Raised The Following Grounds Before Us: “I. Denial Of Exemption Of Rs.47,18,400/- Claimed U/S 54Ec Of The Act, In Respect Of Investment In Capital Gains Bonds: 1. On The Facts & In The Circumstances Of The Case & In Law, The Id. C.I.T. (Appeals) Nfac, Erred In Upholding The Order Dt 29-01-2020 Passed U/S 154 By Adit, Cpc Denying The Relief For Exemption Of Rs.47,13,400 U/S 54Ec For Investment Of Rs. 50 Lakhs In Capital Gains Rec Bonds. 2. The Id. Cit. (Appeals) Failed To Appreciate & Consider That The Exemption Was Claimed U/S 54 Ec Of The Act, However The Same Was Not Reflected In Itr-3 Of Cpa Due To Technical Snag Which Is To Be Resolved By Dit (Systems). 3. Without Prejudice The Appellate Authority Ought To Have Considered The Claim On Its Own Merits, When Details Of Investment Made In Rec Bonds Were On Record Ii. Set-Off Of Short Term Capital Loss Against Long Term Capital Gains:

For Appellant: Ajay Singh &For Respondent: Manoj Kumar Sinha
Section 115BSection 154Section 54Section 54ESection 80T

Mukunda Prasad Misra, Cuttack, Odisha vs. Asst. Commissioner of Income Taxc, Circle-2(1), Cuttack, Odisha

In the result, appeal of the assessee is allowed

ITA 281/CTK/2023[2015-16]Status: DisposedITAT Cuttack29 Nov 2023AY 2015-16

Bench: Shri George Mathanआयकर अऩीऱ सं/Ita No.281/Ctk/2023 (ननधाारण वषा / Assessment Year :2015-2016) Mukund Prasad Mishra, Vs Acit, Circle-2(1), Cuttack Plot No.Hg-821/822, Cda, Sec-10 Cuttack-753014 Pan No. :Adfpm 1834 Q (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee By : Shri K.K.Bal, Advocate राजस्व की ओर से /Revenue By : Shri Charan Dass, Sr. Dr सुनवाई की तारीख / Date Of Hearing : 29/11/2023 घोषणा की तारीख/Date Of Pronouncement : 29/11/2023 आदेश / O R D E R This Is An Appeal Filed By The Assessee Against The Order Of The Ld Cit(A), National Faceless Appeal Centre (Nfac), Delhi, Dated 27.06.2023, Passed In Din & Order No.Itba/Nfac/S/250/2023- 24/1053972764(1) For The Assessment Year 2015-2016. 2. It Was Submitted By The Ld. Ar That The Assessee Is A Retired Judicial Officer. The Assessee Has Filed His Return Of Income For The Relevant Assessment Year Declaring Long Term Capital Gain Of Rs.1,51,156/- & The Total Income Of Rs.10,25,280/-. It Was The Submission That During The Relevant Assessment Year The Assessee Has Sold Two Properties One Being A Land At Bhubaneswar, Khurda For Rs.50 Lakhs & Another Being A Flat At Bidanasi, Cuttack For Rs.45,00,000/-. It Was The Submission That On The Sale Of The Properties The Assessee Had Claimed Deduction U/S.54Ec Of The Act & Also Deduction On Account Of His Deposit In The Capital Gains Account Scheme Of 1988 With State Bank Of India. It Was The Submission That The Ld. Ao Held That The Assessee Having Not Invested The Entire

For Appellant: Shri K.K.Bal, AdvocateFor Respondent: Shri Charan Dass, Sr. DR
Section 54E
Section 54EC Income Tax Act (2025: s.85) — Case Laws | BharatTax