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2020 (9) TMI 96 - HC - Income TaxExemption u/s 54F - investment made in the house property in USA - scope of amendment incorporated in Section 54F(1) - whether an assessee was required to purchase a residential house within India for the purposes of claiming exemption under Section 54F? - HELD THAT:- Residential property, for which investment is made needs to be situated in India for the purpose of claiming exemption u/s 54F from Assessment year 2015-16 only and not prior to that period. In the instant case, the investment in a residential house was made in USA prior to 01.04.2015, whereas, the requirement of making an investment in a residential house, which was incorporated by way of amendment, came into force w.e.f. 01.04.2015. In the light of aforesaid well settled legal principles as well as the memorandum of objects of Finance Act, 2014, which clearly provide that amendments will take effect from 01.04.2015 and will apply to Assessment year 2015-16 onwards as well as the CBDT's Circular dated 21.01.2015, it is evident that amendment incorporated in Section 54F(1) of the Act is prospective in nature. Substantial question of law framed by this court is answered in the affirmative and against the revenue.
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