BHUPENDRA KUMAR BHAUMIK Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this writ petition under article 226 of the Constitution of India the petitioner has challenged the constitutional validity of sub -section 1C of section 54E of the Income Tax Act, 1961 (hereinafter referred to as the Act), as introduced by the Finance Act, 1992, praying that the words and figures '29th day of February, 1992' in the said section be struck down and instead the words and figures '31 -3 -1992' be substituted.

(2.) THE Finance Act, 1992, by amending section 54E(1) of the Act, withdrew the exemption from tax in respect of long term capital gains from the assessment year 1993 -94. Under this provision, as it stood prior to the amendment, exemption from tax in respect of long term capital gains was allowed under section 54E(1) to the extent the net consideration was invested or deposited in any specified asset prescribed in that section within a period of six months from the date of transfer.

(3.) SECTION 54E(1) of the Act prior to the amendment of 1992 stood as under : '54E. Capital gain on transfer of capital assets not to be charged in certain cases.(1) Where the capital gain arises from the transfer of a long term capital asset (the capital asset so transferred being hereafter in this section referred to as the original asset) and the assessed has, within a period of six months after the date of such transfer, invested or deposited the (whole or any part of the net consideration) in any specified asset (such specified asset being hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,