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2018 (5) TMI 1877 - AT - Income TaxExemption u/s 54 denied - investment in house property purchased abroad - DR submitted that the main intention to give exemption u/s. 54 and 54F is to give a boost to the domestic housing sector Buying immovable property abroad would not serve any purpose or benefit to the domestic economy - scope of amendment - HELD THAT:- Undoubtedly, prior to amendment made by the Finance Act, 2014 w.e.f. 01.04.2015, the language of section 54 of the Act require the assessee to invest the capital gains in a residential property. It is only subsequent to the amendment, which has come into effect from 01.04.2015 that such investment is required to be made in a residential property in India. The assessment year before us is prior to 01.04.2015. Therefore, the amendment would not be application. Similar situation, though in the context of section 54F of the Act, has been considered in the case of Leena Jugal Kishore Shah [2016 (12) TMI 351 - GUJARAT HIGH COURT] wherein, the identical issue has been decided in favour of the assessee There was no condition in section 54F of the Income-tax Act at the relevant time that the capital gain arising out of transfer of capital asset should be invested in a residential house situated in India. In the present case the assessee has purchased the residential house abroad out of the sale proceeds of the plot in India and thus she has fulfilled the conditions of section 54F of the Income-tax Act application to the assessee's case. - Decided in favour of assessee.
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