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2016 (6) TMI 479 - AT - Income TaxDenial of exemption u/s.54EC of the Act investment in REC capital gains bonds falling in two financial years - Held that:- On combined reading of both the provisions, the legislative intent in the subsequent amendment is to restrict the investment of ₹ 50,00,000/- to one financial year only. There was ambiguity and confusion on interpreting the provisions as the Commissioner of Income Tax (Appeals) examined the issue on the interpreting the word "any" referring to dictionary meaning because there was no certainty was visualized considering the provisions, CBDT circulars and facts of the case. The Assessing Officer tried to make a distinction of provisions for restricting investment of ₹ 50,00,000/- only in one financial year. The assessee has invested in two installments falling in two financial years and availed tax exemption. Amendment of provisions of Sec.54EC in Finance Act, 2014 are prospective and apply from 01.04.2015 effective from assessment year 2015-16 onwards. Thus we direct the Assessing Officer to delete the addition and allow the grounds in favour of the assessee.
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