TMI Blog2015 (8) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... de 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 , we decide this issue in favour of the assessee. - ITA No. 7058/M/2013 - - - Dated:- 13-5-2015 - R C Sharma, Am And Vijay Pal Rao, JM,JJ. For the Appellant : Shri K K Lalkaka, AR For the Respondent : Shri Love Kumar, DR ORDER Per: Vijay Pal Rao: This appeal by the assessee is directed against the order dated 18.05.2011 of CIT(A) for the assessment year 2008-09. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged the validity of reopening vide ground No.1 of the grounds of appeal, however, we first take up the ground No.2 which deals with the merits of the case regarding disallowance of deduction under section 54 in respect of the capital gain invested for purchase of residential house outside India. The assessee sold a flat No.2.1, Spenta Coop Housing Society, B.G. Kher Marg, Mumbai and earned capital gain of ₹ 1,45,41,080/-. The assessee has purchased a residential property outside India in Australia being flat No.Unit G01, 1 Danks Street West, Port Melbourn, and claimed exemption under section 54 of the Income Tax Act. The Assessing Officer (AO) has disallowed the claim of deduction under section 54 on the ground that the investment was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dabad Benches of this Tribunal in the case of Leena J. Shah. 6. Having considered the rival submissions as well as the relevant material on record, we find that a similar issue has already been decided by the coordinate bench of the Tribunal in the case of Mr. Girdhar Mohanani Mrs. Varsha Girdhar in ITA Nos.4591 4592/Mum/2013 decided on 06.05.15 and the relevant finding in paras 4 to 9 is as under: 4. We have considered rival contentions and found that during the year assessee has claimed exemption u/s.54. Out of the sale consideration of ₹ 87,37,291/-, assessee has deposited ₹ 50 lakhs in capital gains in scheme account. Subsequently deposit was withdrawn during the assessment year 2010- 2011 under consideration and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 house should to be constructed in India only w.e.f. assessment year 2015-2016.. However, the assessment year under consideration is 2010-2011 i.e. much prior to the amendment so brought in Finance (No.2) Bill, 2014. There i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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