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2015 (8) TMI 212 - ITAT MUMBAI

2015 (8) TMI 212 - ITAT MUMBAI - TMI - Claim of exemption u/s.54 denied - investment made in residential house situated outside India - Held that:- The Finance (No.2) Bill, 2014 brought an amendment in Section 54, wherein sub-section (1), for the words “constructed, a residential house”, the words “constructed, one residential house in India” has to be substituted w.e.f. 1st day of April, 2015. Thus, it is clear from the amendment so brought for claiming exemption u/s.54, that new residential ho .....

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o comply with other conditions of Section 54. Since the AO has out-rightly declined exemption on this plea without examining the other conditions of Sec.54 so as to make assessee eligible, we accordingly restore the appeal to the file of the AO for verifying other conditions to be fulfilled for grant of exemption u/s.54 in both the appeals of the assessees. The AO is also at a liberty to verify actual acquisition of house property outside India, in terms of transfer deeds so executed in favour o .....

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the appeals, wherein assessee is aggrieved for decline of claim of exemption u/s.54., 3. At the outset, ld. AR placed on record order of the Tribunal in case of Mrs.Prema P. Shah, 100 ITD 60, wherein it was held that even if house property is acquired in a foreign country, Section 54 does not exclude right of an assessee to claim benefit in respect of such property if all other conditions laid down in that section are satisfied. 4. We have considered rival contentions and found that during the y .....

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decision in the case of Dr. Girish M. Shah, Mrs.Prema P. Shah, Leena P. Shah, wherein it was held that exemption is permissible, even if investment in new residential house is made outside India. 6. On the other hand, ld. AR relied on the decision of Bangalore bench of the Tribunal in the case of Vinay Mishra, 141 ITD 301, wherein it was held that provisions of Section 54F does not suggest that new residential house acquired should be situated only in India. Accordingly exemption was granted in .....

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e India. Similarly, the Chennai Bench of the Tribunal in case of N.Ranganathan, 33 ITR(AT) 444 held that the profit on sale of property used for residential house (foreign house property) acquired outside India is eligible for exemption u/s.54. However, no contrary decision of Tribunal or Hon‟ble High Court was brought to our notice suggesting that exemption will not be available in case residential house is acquired outside India. 7. The Finance (No.2) Bill, 2014 brought an amendment in S .....

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