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 capital gains tax exemption for the appellant, M/s Fibre Boards (P) Ltd., who sold its industrial unit in an urban area and claimed exemption based on advances made for purchasing assets in a non-urban area. The Court held that the appellant's claim was not valid as the area had not been declared non-urban by the Central Government, and merely giving advances did not constitute 'utilization' of capital gains as required under Section 54G. Consequently, the Court upheld the High Court's decision reversing the Income Tax Appellate Tribunal's ruling, affirming that the conditions for exemption under Section 54G were not met.