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2012 (9) TMI 317 - AT - Income TaxExemption u/s 54EC - dis-allowance - LTCG on sale of properties - sale consideration deposited in Bank out of which FDR was purchased and some money was given loan to certain persons - later REC bonds purchased - this sum according to the AO had been received by way of transfer from another bank account of the assessee - dis-allowance on ground that investment in purchase of REC bonds were not out of capital gain - Held that:- Only requirement u/s 54EC is that investment in specified assets should have been made within a period of six months from the date of transfer of such capital asset. This condition has been complied by the assessee and there is no further condition that the funds should be given out of capital gain. Otherwise also once money is deposited in the bank account it gets merged with other funds of the assessee and it is impossible to locate which funds have been used for purchase of specified assets because the normal businessman would keep on doing various transactions in the bank account. Deduction allowed - Decided in favor of assessee
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