Section 54F deduction eligible against new residential house acquired outside India

Rahil Mahesh Kumar Nizamuddin Vs DCIT (ITAT Bangalore)

Held that deduction under section 54F is available against new residential house acquired outside India as provisions of section 54F doesn’t use the word ‘in India’.

Facts-

Deduction u/s 54F of the Act in respect of investment of Rs.8,74,20,000/- in purchase of a residential building in Newton MA, USA. The assessee claimed the above deduction before the AO. The AO rejected the same on the reason that it was mentioned only as “a residential house” and not as “a residential house in India”. The assessee was free to make the investment anywhere in the World. According to the AO, the benefit of section 54F of the Act should be given only in respect of investment in residential house in India.

Conclusion-

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