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2015 (2) TMI 624 - AT - Income TaxDisallowance under Section 54EC - whether investment of ₹ 50 lakh made in HHAI Bonds on 26-08-2008 can be considered to be made within six months period as per the proviso to sec. 54EC - Held that:- Since the wording of the proviso to section 54EC is clear, the benefits which are available to the assessee cannot be denied. In view of above, it is hereby held that the assessee is entitled for exemption of ₹ 1 crore as six months period for investment in eligible investments involved is two financial years. Language of Section 54EC is clear and unambiguous and it leads to the interpretation that the assessee can make the investment in two different financial years provided in a financial year the investment made did not exceed ₹ 50,00,000/-. Respectfully following the referred decision of the co-ordinate benches in Ram Aganval v. Jt. CIT [2001 (9) TMI 233 - ITAT BOMBAY-G ] and Ms. Rania Faleiro [2013 (11) TMI 518 - ITAT MUMBAI] , this issue is accordingly decided in favour of the assessee. Indexed cost of acquisition of the property - computation of LTCG - adopting the date of acquisition as date of inheritance of the property v/s date of acquisition by the person from whom the property has been inherited by the assessee - Held that:- As relying on CIT Vs. Manjula J. Shah [2011 (10) TMI 406 - BOMBAY HIGH COURT] wherein held that the question of deducting the cost of improvement incurred by the previous owner in the case of an assessee covered under section 49(1) of the Act would arise only if the period for which the asset was held by the previous owner is included in determining the period for which the asset was held by the assessee. Therefore, it is reasonable to hold that in the case of an assessee covered under section 49(1) of the Act, the capital gains liability has to be computed by considering that the assessee held the said asset from the date it was held by the previous owner and the same analogy has also to be applied in determining the indexed cost of acquisition. - Decided in favour of the assessee.
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