2015 (8) TMI 316

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....he reassessment proceedings were initiated contrary to the provisions of law, and therefore, the said proceedings are illegal, in excess of and/or want of jurisdiction and/or otherwise void. 2. On the facts and in the circumstances of the case and in law, the learned CIT (Appeals) has erred in sustaining the order of the Assessing Officer by not granting exemption in respect of capital gains of Rs. 1,33,56,630/- earned on sale of residential property although all the requisite conditions laid down in section 54 of the Act were duly fulfilled. 3. On the facts and in the circumstances of the case and in law, the learned CIT (Appeals) has erred in not dealing with the additional Grounds of Appeal relating to provisions of Article 24 being no....

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....ision of the Tribunal in the case of Mrs. Prema T. Shah rather the Ld. CIT(A) has considered the amended provisions of section 54 as well as a decision of Ahmedabad Bench of this Tribunal in the case of Leena J. Shah. Accordingly, the Ld. CIT(A) has confirmed the action of the AO in disallowing the deduction under section 54. 4. We have heard the Ld. A.R. as well as the Ld. D.R. and considered the relevant material on record. Since the facts relevant to this issue are not in dispute and therefore the only issue arises for our consideration and adjudication is whether the deduction under section 54 is allowable in respect of the investment made in the residential property outside India for the assessment year under consideration. The assess....

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....rema P. Shah, Leena P. Shah, wherein it was held that exemption is permissible, even if investment in new residential house is made outside India. 6. On the other hand, ld. AR relied on the decision of Bangalore bench of the Tribunal in the case of Vinay Mishra, 141 ITD 301, wherein it was held that provisions of Section 54F does not suggest that new residential house acquired should be situated only in India. Accordingly exemption was granted in respect of residential house acquired outside India. It was observed that on a plain reading of provisions of Section 54F one does not find anything therein to suggest that the new residential house acquired should be situated in India. The words "in India" cannot be read into section 54F, when Pa....

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....capital asset, being buildings or lands appurtenant thereto, and being a residential house, and the assessee within a period of one year before or two years after the date of transfer, purchases, or within a period of three years after the date of transfer constructs, a residential house, then, the amount of capital gains to the extent invested in the new residential house is not chargeable to tax under section 45 of the Income-tax Act. 9. In view of the above, we hold that during the year under consideration, assessee was entitled for exemption u/s.54 even if investment was made in residential house situated outside India, provided that assessee has to comply with other conditions of Section 54. Since the AO has out-rightly declined exemp....