. The language of the proviso is clear and unambiguous and so the assessee is entitled to
get exemption upto `1 crore in this case. [Aspi Ginwala v ACIT (2012) 20 Taxmann.com 75 (Ahd)(Trib).
See also Sriram Indubhal v ITO (2013) 32 Taxmann.com 118 (Chennai)(Trib); Coromandal Industries P. Ltd. v ACIT 36 Taxmann.com 6 (Chennai) (Trib); ITO v Rania Faleiro (2013) 33 Taxmann.com 611 (Punjab) (Trib)]. However, a contrary view was taken in Raj Kumar Jain & Sons (ITAT Jaipur) that the exemption under section 54EC had to be restricted to `50 lakhs. However, Circular No. 3/2008 dated 12-03-2008 issued by the CBDT makes it clear that the Proviso only intended to restrict the investment in a particular financial year and did not intend to restrict the maximum amount of exemption permissible under section 54EC. The fact that the Proviso uses the words "in a financial year" fortifies this interpretation. Accordingly, it has to be held that the assessee is entitled to total deduction of `1 crores in respect of the investment of `50 lakhs made in each financial year
Amendment made by the Finance (No. 2) Act, 2014 to restrict the investment only upto `50 lakh
The Act has inserted second proviso in section 54EC(1) so as to provide that the investment made by an assessee in the long-term specified asset, out of capital gains arising from transfer of one or more original asset, during the financial year in which the original asset or assets are transferred and in the subsequent financial year does not exceed `50,00,000. back