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JUDGMENT R. Sudhakar, J. - The Revenue has filed this appeal challenging the order of the Income Tax Appellate Tribunal 'B' Bench, Chennai, dated 25.6.2013 made in I.T.A.No.411/Mds/2013 for the assessment year 2009-2010, by raising the following questions of law: "(i) Whether the Tribunal was right in relying upon the decision of Sriram Indubal v. ITO [I.T.A. No.1950/Mds/2012], especially when there is an appeal pending before the High Court which has been preferred by the appellant? (ii) Whether the Tribunal ought to have noted that the intention of the legislature is to limit the investment in the long term specified asset to Rs.50 Lakhs as held in the case of Areva T&D India Ltd. v. Assistant Commissioner 326 ITR 540, which had been relied upon by the Assessing Officer and the Commissioner of Income Tax (Appeals)?" 2.1 The brief facts of the case are as under: The assessee company is engaged in the business of manufacturing engineering components and offering engineering consultancy. The assessee company filed return of income for the assessment year 2009-2010 admitting a taxable income of Rs.67,68,507/-. The return was selected for scrutiny and notice under Section 143(2) of the Income Tax Act was issued on 20.8.2010. Subsequently, after obtaining the copies of returns of income and other relevant documents, a notice under Section 142(1) of the Act was issued on 14.7.2011. The assessee furnished such details on 9.10.2011 and 19.10.2011. 2.2 It was noticed from the documents filed by the assessee that the assessee sold the land and building of Hyderabad Unit for a total consideration of Rs.1,75,00,000/-. The assessee claimed to have sold the land component at Hyderabad for Rs.1,13,74,000/- and after adjusting the indexed cost of acquisition, the total long term capital gains was calculated at Rs.1,09,98,256/-, of which Rs.1,00,00,000/- was claimed as deduction under Section 54EC of the Act, by investing Rs.50 Lakhs in REC Bonds on 31.3.2009 and another Rs.50 Lakhs in REC Bonds on 31.4.2009. However, the Assessing Officer restricted the deduction to Rs.50 Lakhs by stating that the intention of the legislature is to limit the investment in long term…

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