Case Law Details
Khalid Sayed Vs Centralized Processing Centre (ITAT Mumbai)
Introduction: The Income Tax Appellate Tribunal (ITAT) Mumbai recently made a significant ruling regarding capital gain exemption under section 54F of the Income Tax Act for properties purchased outside India. In the case of Khalid Sayed vs. Centralized Processing Centre, the ITAT clarified the eligibility criteria for claiming this exemption, particularly for properties acquired before the Finance Act of 2014. In this article, we will provide a detailed analysis of the case and its implications.
1. Background of the Case:
Khalid Sayed and his wife, Smt. Aditi Khalid Sayed, jointly owned a property in Mumbai, purchased in 2003. In 2013, they sold this property and bought a residential property in Canada. The key question was whether they were eligible for capital gain exemption under section 54F for the property purchased abroad.
2. ITAT’s Ruling: The ITAT, after careful consideration, ruled that prior to the introduction of the phrase “in India” in section 54F by the Finance Act of 2014 (effective from April 1, 2015), the Assessee was entitled to claim the exemption for a residential house purchased or constructed abroad. This ruling was in line with previous decisions of the ITAT and the principles of statutory interpretation.
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