M/S Fibre Boards (P) Ltd Bangaloare vs Cit Bangalore

The Supreme Court addressed the applicability of Section 54G of the Income Tax Act concerning the exemption of capital gains tax for a company relocating its industrial unit from an urban to a non-urban area. The Court held that the requirement for a valid exemption under Section 54G necessitates actual purchase of assets within the stipulated timeframe, and mere advances do not constitute utilization of capital gains. The Court upheld the High Court's ruling that the appellant failed to meet the necessary conditions for exemption, affirming the denial of the claim for capital gains tax exemption.