Two Important High Court Judgements On S. 54EC And S. 145

CIT vs. C. Jaichander (Madras High Court)

S. 54EC: Assessee is eligible for deduction of Rs.1 Crore in respect of investment of Rs.50 Lakhs made in two different financial years. Proviso to s. 54EC seeking to curb this has effect from AY 2015-16
(i) On a plain reading of Section 54EC(1) of the Act it is clear that it restricts the time limit for the period of investment after the property has been sold to six months. There is no cap on the investment to be made in bonds. The first proviso to Section 54EC(1) of the Act […]

CIT vs. Teletronics Dealing Systems P. Ltd (Bombay High Court)

S. 145: AO is not entitled to reject books of account in a casual and high-handed manner

The assessing officer has been faulted for not following section 145(3) of the Act. The tribunal has held that before the assessing officer records satisfaction about the correctness or completeness of the accounts of the assessee, he ought to have given proper opportunity to the assessee. The books of account could not have been rejected […]