TMI Blog2018 (3) TMI 1942X X X X Extracts X X X X X X X X Extracts X X X X ..... n the amendment kicks in, there is no statutory bar for the taxpayer to make investments outside India in residential house property in order to get the benefit of deductions 54F provided other conditions were fulfilled. Thus, since the assessment year under consideration is prior to the amendment of section 54F by the Finance Act, 2014 the law as on date stands that the claim of the assessee has to be allowed. - Decided in favour of assessee. - ITA No. 802/CHD/2015 - - - Dated:- 19-3-2018 - MS. DIVA SINGH, JUDICIAL MEMBER AND SHRI B.R.R. KUMAR, ACCOUNTANT MEMBER For the Appellant : Shri Sandeep Goyal Shri Navdeep Monga For the Respondent : Smt.Chander Kanta, Addl.CIT ORDER PER DIVA SINGH, JM The present appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar in reinvesting long term Capital Gain in buying a residential property in Foreign Country. Meaning thereby, to claim exemption u/s 54 of the Act ibid, there were no restrictions in regard to the location of the new residential property, it can be located very well outside India. However, an amendment u/s 54 of Income Tax Act, 1961 has been made by introducing Finance Act, 2014, wherein only residential house property purchased in India qualifies for exemption. iv) That furthermore, the Ld. CIT (A) is erroneous in upholding the addit ions made by the Ld. AO on the account of alleged income under the head of Capital gain whereas the income under the head of capital gain is NIL. v) That the impugned order dated 22.09.2015 passed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cited before the Bench to take a contrary view. 4. We have heard the rival submissions and perused the material available on record. The record shows that the assessee sold a specific house No. 2531 in sector 35 Chandigarh on 01/01/2008 i.e. in financial year 2007 08 for an amount of ₹ 3.20 Crore. In the meantime the assessee made an investment in house number 1205/1 in sector 51 on 27/12/2007 out of the sale proceeds of Sector 35 house. The assessee filed a certificate to this extent qua the purchase of the sale proceeds from house in Sector 35. The remaining amount was deposited by the assessee in NRO account in HSBC Sector 9 Chandigarh. Subsequently, the remaining amount of ₹ 2.95 crore was invested in purchase of house in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed States of America. In fact, she has purchased a residential house in U.S.A. out of the capital gain on sale of the plot in India and thus she has fulfilled the conditions stipulated in section 54F of the Income-tax Act. She has invested the capital gains in a residential house within the stipulated time. There was no condition in section 54F of the Income-tax Act at the relevant time that the capital gain arising out of transfer of capital asset should be invested in a residential house situated in India. The language of section 54F of the Income-tax Act beforeits amendment was that, the assessee should invest capital gain in a residential house. It is only after the amendment to section 54F of the Income-tax Act by the Finance (No. 2) A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adopt the interpretation which favours the assessee. Section 54F of the Act before its amendment was clear that the assessee should investment in. a residential house. The language of section is clear and unambiguous. Therefore, we cannot import into the statute the words i n India' as interpreted by the authorities. Thus, taking into consideration the above facts, we are of the opinion that benefit of section 54F before its amendment can be extended to a residential house purchased outside India. In that view of the matter, the appeal is allowed. The order of the Tribunal is set aside. We answer the question in favour of the assessee and against the revenue. 4.1 The Ld. AR in the course of the hearing had also filed copy of the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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