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2012 (6) TMI 139 - AT - Income TaxDeduction u/s 54EC - eligibility for deduction u/s 54EC on investment in REC Capital Gain Bonds on account of minors' income from Long Term Capital Gains (LTCG) separately, in case income is clubbed u/s 64(1A) - assessee together with his minor children earned LTCG on sale of shares and invested the same in specified bonds - Revenue clubbed LTCG earned by his minor children in assessee's hands but limited deduction u/s 54EC only to investment of Rs.50 lakhs in assessee's name - Held that:- From definition of 'person' u/s 2(31), it is clear that in case minor is an assessable entity even though his income is clubbed u/s 64(1) in the hands of his parents, he is to be considered separate than his parents. Further, income to be clubbed u/s 64 should be net taxable income, i.e. income computed after allowing permissible deductions. It may also be mentioned that there is difference between the word "assessee" and the word "person". Notification no. 380/2006 dated 22.12.2006 prescribing maximum limit of 50 lacs on the amount of investment in REC Bond, have not put on any embargo on the investments by an assessee but the embargo is on allotment of the bonds to a "person" and such embargo is on the allotting authority. Sec. 54EC stipulates investment limit and not deduction limit, hence deduction for investment by each minor child is thereby allowed - Decided in favor of assessee
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