TaxTMI 
TaxTMI 
2018 (2) TMI 1209
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....lowing the exemption claim u/s 54F of Rs. 76,66,657, although all the requisite conditions laid down in section 54F of the Act as they stood during the relevant assessment year were duly fulfilled? 2. On the facts and circumstances of the case whether the Commissioner of Income Tax (Appeals) was justified in taking the sale price of Terrace in Arcadia Building as per Stamp Duty Valuation Authority u/s 50C of Rs. 86,32,000 inspite of the same being disputed by the appellant in his revised computation? 3. On the facts and circumstances of the case whether the Commissioner of Income Tax (Appeals) was justified in rejecting the valuation report as on 01-04-1981 valuing the terrace sold at Rs. 9,90,000? 4. On the facts and circumstances of the case whether the Commissioner of Income Tax (Appeals) was justified in disregarding the revised Computation of Income filed by the assessee during the assessment, wherein sale of shares of private limited company was claimed under Long Term Capital Gains, instead of Short Term Capital Gains as claimed in the original return of income? The Appellant craves leave to add, alter, amend and or modify all or any grounds of appeal mentioned above....
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....uction u/s. 54F before the amendment to Section 54F made by Finance Act 2014, which has come into effect from 01.04.2015 . We are concerned with previous year relevant to AY 2011-12 which is prior to coming into force Finance Act, 2014. The aforesaid decision of the Hon'ble Gujarat High Court is reproduced here under:- "9. We have heard learned counsel for the parties. We have perused the order of the Tribunal. There is no finding recorded by the authorities below that the appellant- assessee has not invested the sale proceeds in a residential house. It is also not in dispute that the appellant has not purchased the residential house in United 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 ....
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....sessee also brought to our notice decision of ITAT, Mumbai Bench in the case of ITO v. Nishant Lalit Jadhav in ITA no. 6883/Mum/2014 for AY 2011-12, vide orders dated 26-04-2017 wherein tribunal has also taken similar view , wherein the claim of the assessee of re- investments made outside India in a residential house property were allowed vide deduction u/s 54F , by holding as under:- "5. We have carefully considered the rival submissions. Undoubtedly, prior to the amendment made by Finance (Nos.2) Act, 2014 w.e.f. 01/04/2015, the language of section 54 of the Act required the assessee to invest the capital gain in a residential property. It is only subsequent to the amendment, which has come into effect from 01/04/2015, that such investment is required to be made in a residential property in India. The assessment year before us is prior to 01/04/2015, and, therefore, the amendment would not be applicable. A similar situation, though in the context of section 54F of the Act, has been considered by the Hon'ble Gujarat High Court in the case of Smt.Leena J. Shah (supra); notably, so far as the impugned issue is concerned, the requirement of sections 54F & 54F of the Act is par....
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....y Finance Act, 2014 w.e.f. 01-04-2015. There is no dispute between rival parties so far as compliance of the other conditions by the assessee as stipulated u/s 54F of the 1961 Act to get the benefit of deduction u/s 54F are concerned . The Hon'ble Gujarat High Court in the case of Leena Jugalkishore Shah(supra) has allowed the deduction u/s. 54F to the taxpayer making investments outside India in residential house properties . The relevant portion of the decision of Hon'ble Gujarat High Court in the case of Leena Jugalkishore Shah(supra) is reproduced here under:- "9. We have heard learned counsel for the parties. We have perused the order of the Tribunal. There is no finding recorded by the authorities below that the appellant- assessee has not invested the sale proceeds in a residential house. It is also not in dispute that the appellant has not purchased the residential house in United 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 stipula....
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....nded 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." The Mumbai tribunal has followed the decision of Hon'ble Gujarat High Court in the case of Leena Jugalkishore Shah(supra) while deciding appeal in the case of the Nishant Lalit Jadhav(supra). No contrary decision of Hon'ble High Courts and/or Hon'ble Supreme Court is brought to our notice by Revenue. Respectfully following the decision of Hon'ble Gujarat High Court in the case of Leena Jugalkishore Shah(supra) and also decision of the coordinate benches of ITAT,Mumbai in the case of Nishant Lalit Jadhav(supra), we allow the claim of the assessee for deduction u/s. 54F for investment made outside India in the residential flat in Dubai, UAE . As we have allowed the claim of deduction u/s 54F to the assessee for making investment in residential flat in Dubai, UAE . It is the say of the learned counsel for the assessee that the other grounds raised by the assessee in its memo of appeal filed with the tribunal related to the methodology adopted and valuation of the prope....