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2018 (2) TMI 1209 - AT - Income TaxDeduction u/s 54F - new residential flat is situated outside India and hence deduction u/s 54F is not available - Held that:- There is an amendment by Finance Act 2014 in Section 54F, with effect from 01.04.2015 wherein the benefit of deduction u/s 54F will be allowed only when reinvestment in residential house property is made within India. Prior to the aforesaid amendment , there was no bar for the taxpayer making investments outside India in residential house property to get the benefit of deduction u/s. 54F provided other conditions are fulfilled. We are presently concerned with appeal for AY 2011-12 which is prior to amendment of Section 54F by Finance Act, 2014 w.e.f. 01-04-2015. There is no dispute between rival parties so far as compliance of the other conditions by the assessee as stipulated u/s 54F of the 1961 Act to get the benefit of deduction u/s 54F are concerned . The Hon’ble Gujarat High Court in the case of Leena Jugalkishore Shah (2016 (12) TMI 351 - GUJARAT HIGH COURT) has allowed the deduction u/s. 54F to the taxpayer making investments outside India in residential house properties . Claim of being charged to tax as long term capital gain on sale of shares of private limited company instead of it being short term capital gain as claimed in the return of income filed by the assessee with Revenue - Held that:- Since the assessee filed the claim before the AO as well before learned CIT(A) to bring to tax capital gains as long term capital gain on sale of shares of Private Limited Company instead of short term capital gain as declared in the return of income we admit the said claim filed by the assessee , however , we are remitting the matter back to the file of the A.O for considering the aforesaid additional claim raised by the assessee on merits after hearing the contention of the assessee and evaluating evidences filed/to be filed by the assessee on merits in accordance with law. A.O will consider the claim of the assessee on merits in accordance with law. The assessee is directed to appear before the A.O. and file necessary contentions, explanation and evidences before the A.O. w.r.t. aforesaid additional claim which shall be evaluated by the AO on merits in accordance with law. The AO shall provide proper and reasonable opportunity of being heard to the assessee in accordance with principles of natural justice in accordance with law on merits.
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