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2014 (7) TMI 257 - ITAT CHENNAIClaim of deduction u/s 54 – new house purchased is in a foreign country - exemption from Capital gain - Held that:- CIT(A) has disallowed the assessee’s claim of deduction u/s. 54 for the reason that he had purchased his new house in Singapore; paid his consideration in foreign currency, the amount turned out to be more than sale consideration realized from sale of Chennai house and his accounts statement did not provide exact information about flow of money – Relying upon Vinay Mishra Vs. ACIT [2013 (9) TMI 80 - ITAT BANGALORE] - sec.54 claim cannot be rejected merely for the reason that the new house purchased is in a foreign country - the Revenue has failed to draw any distinguishing features - the CIT(A) first reason is not sustainable in the eyes of law. The purchase amount is more than sale proceeds and assessee’s bank statement did not provide exact information - sec. 54 is a beneficial provision wherein such a condition is nowhere provided for - the assessee had utilized his consideration money only to purchase the new Singaporean house - the CIT(A)’s other reasons are not liable to be affirmed - The assessee is held entitled for claim of deduction u/s. 54 of the Act – Decided in favour of Assessee.
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