TMI Blog2015 (8) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... he amendment so brought in Finance (No.2) Bill, 2014. There is no reason to decline exemption u/s.54 during the A.Y.2010-11 under consideration. As during the year under consideration, assessee was entitled for exemption u/s.54 even if investment was made in residential house situated outside India, provided that assessee has to 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of investment made in house property outside India. 5. It was contended by ld. DR that CIT(A) has already considered the 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 respect of residential house acquired outside India. It was observed that on a plain reading of provisions of Section 54F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions contained in sub-section (1) of section 54 of the Income-tax Act, before its amendment by the Act, inter alia, provided that where capital gain arises from the transfer of a long-term capital asset, being buildings or lands appurtenant thereto, and being a residential house, and the assessee within a period of one year before or two years after the date of transfer, purchases, or within a period of three years after the date of transfer constructs, a residential house, then, the amount of capital gains to the extent invested in the new residential house is not chargeable to tax under section 45 of the Income-tax Act. 9. In view of the above, we hold that during the year under consideration, assessee was entitled for exemption u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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