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2014 (12) TMI 521 - AT - Income TaxRestriction of deduction on LTCG u/s 54EC - Quantum of deduction u/s 54EC to be restricted to ₹ 50 lac or not – Held that:- Similar matter has been decided in CIT Vs. C. Jaichander & Another [2014 (11) TMI 54 - MADRAS HIGH COURT] wherein it was held that section 54EC(1) of the Act restricts the time limit for the period of investment after the property has been sold to six months - There is no cap on the investment to be made in bonds - The first proviso to Section 54EC(1) of the Act specifies the quantum of investment and it states that the investment so made on or after 1.4.2007 in the long-term specified asset by an assessee during any financial year does not exceed fifty lakh rupees - as per the existing provisions of section 54EC the ceiling on the investment to be made in specified bonds is for a particular Financial Year - as per the un amended provisions of section 54EC, the assessee is entitled for deduction of ₹ 1 crore, when the assessee has satisfied both the conditions of the investment in specified bonds of ₹ 50 lac in each Financial Year and the said investment is within the period of six months – Decided in favour of assessee. Addition of outstanding sundry creditors – Held that:- Assessee contended that ₹ 5,00,000/- was received as an advance for sale of shop at Pune - since the sale transaction did not materialize, therefore, the amount was offered to tax for A.Y. 2010-11 - except the submissions, no evidence has been produced by the assessee that the amount was received as an advance for sale of shop – also, when the amount was not repaid and finally offered by the assessee for the AY 2010-11, the assessee has failed to explain the cash credit to the extent of ₹ 5,00,000 – thus, the order of the CIT(A) is upheld – Decided against assessee.
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