Section 54EC - Time Limit gets extended if specified bonds of assessees choice were not available

Section 54EC - Time Limit gets extended if specified bonds of assessees choice were not available:

Section 54EC of the Act having given the respondent a choice of investing either in the bonds of REC or the NHAI, the revenue cannot insist that the respondent ought to have invested its capital gain on sale of property in the bonds of the National Highway Authority. The statue itself provides that the assessee, who is subject to long terms capital gain tax, can avail of exemption under Section 54EC of the Act if he invests in

bonds of either the NHAI or REC. The choice of which bonds to purchase is entirely with the respondent and in case the bonds of respondent’s choice are not available as is proved in the present case, the time to invest in the bonds get

automatically extended till the bonds are available in the market and the assessee can purchase the same.

- CIT, Central - III v. Cello Plast (Bombay High Court)