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2019 (3) TMI 160 - AT - Income TaxExemption u/s 54 - capital gains invested outside India for purchase of residential house i.e. Dubai - LTCG received on sale of residential property - scope of amendment to Sec. 54 by the Finance (No.2) Act, 2014 had w.e.f 01.04.2015 - HELD THAT:- Amendment as per which the term ‘constructed a residential house’ has been substituted by ‘constructed, one residential house in India’, vide the Finance (No.2) Act, 2014 w.e.f 01.04.2015, in itself reveals the legislative intent of restricting the exemption available under the aforesaid statutory provision only in respect of a residential house which was either constructed or purchased by the assessee in India with effect from assessment year 2015-16 and the aforesaid amendment under consideration to Sec. 54 was to be given a prospective effect from A.Y. 2015-16. We are of the considered view that as the entitlement of an assessee to claim exemption under Sec.54 was not qualified by any such condition that the investment towards the construction or purchase of the new residential house was to be made in India during the year under consideration, hence the claim of exemption so raised by him under Sec. 54 in respect of the new residential house that was purchased by him at Dubai, UAE was well in order. No infirmity emerges from the order passed by the CIT(A), who had rightly directed the A.O to grant exemption to the assessee under Sec. 54 in respect of the investment made by him in the residential property in Dubai, UAE, thus uphold his order. - Decided against revenue
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