Long Term Capital Gain, Investment more than amount received under section 54 EC - Professionals - Taxation - TIK Share
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Long Term Capital Gain, Investment more than amount received under section 54 EC


Rahul Rai

2014-01-19

One of our Client has long term capital gain (A.y 2008-09), of 5 L and according to income tax authorities the capital gain was 9L the difference was due to valuation as per register values, and the tax has been paid on 9 lakhs but the matter is he invested entire sale proceeds of 26 to claim capital gain exemption by making investment in capital gain exemption bonds U/s54 EC now the case is he received a demand stating that he have to invest the amount of 35 lakhs (As per govt valuation )and excess of 9 lakhs explicitly to take exemption u/s 54 EC ,and this is against to natural justice as he did not received 35L and received only 26L.

Can I have any case law on this? Asked on facebook by someone.