Case Law Details
I.T.O. Vs Shri Mahesh Gobind Dalamal (ITAT Mumbai)
Conclusion: Exemption under Section 54 was available to assessee for properties purchased in foreign countries as there was no condition in the provision that the property must be purchased in India prior to amendment in the provision in 2015.
Held:
AO noticed that the sale consideration received on sale of the immovable property in India was utilized by assessee to purchase the new residential house at Dubai, UAE. Therefore, assessee was denied the exemption under section 54 by holding that the exemption envisaged under Sec.54 was available only where assessee had invested towards purchase or construction of a new residential property in India. It was noted the term “constructed a residential house‟ had been substituted by „constructed, one residential house in India”, vide the Finance (No.2) Act, 2014 w.e.f 01.04.2015, in itself revealed the legislative intent of restricting the exemption available under the aforesaid statutory provision only in respect of a residential house which was either constructed or purchased by assessee in India with effect from assessment year 2015-16. In the present facts, as the entitlement of an assessee to claim exemption under Sec.54 was not qualified by any such condition that the investment towards construction or purchase of new residential house was to be made in India during the year under consideration, hence the claim of exemption so raised by him under Sec. 54 in respect of the new residential house that was purchased by him at Dubai, UAE was well in order.
FULL TEXT OF THE ITAT JUDGEMENT
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