AMIT BAJAJ ADVOCATE

ITAT Ahmedabad has held in the follwing case that exemption u/s 54EC although is limited to Rs. 50 Lakh in one financial year but such exemptiuon can exceed Rs. 50 lakh if inbvestment is spread over two financial years. It has also been held that if the delay in investment of bonds is due to the fact that bonds were not available then such delay can be condoned and exemption will be allowed.

It is notable here that  recently Jaipur ITAT  in Assistant Commissioner of Income-tax, Circle-2, Ajmer v. Shri Raj Kumar Jain & Sons (HUF) [2012] 19 taxmann.com 27 (Jaipur - Trib.) held that as per section 54EC investment within 6 months is investment for that particular financial year in which transfer has taken place and said period of six months would not include some part of subsequent financial year.