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2008 (9) TMI 510 - MADRAS HIGH COURTCapital Gain- The petitioner Companies decided to invest the capital gain in bonds for the purpose of availing of the benefit of exemption under section 54EC of the Act. On transfer of their business and leasehold rights respectively. The Central Government issued a notification dated December 22, 2006, restricting the investment in bonds to a sum of Rs. 50 lakhs per person. On writ petition challenging the validity of the Notification on the ground that it was ultra vires the provisions of section 54EC of the Act. Held that- the power to limit the amount of investment by an assessee in bond having been incorporated in the section itself and by the proviso to Explanation (b), the bond notified before April 1, 2007 being deemed to be a bond notified under the amended provision. The prayer in the petition become infructuous. The petition dismissed.
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