2018 (8) TMI 1359

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....4, the residential house must be in India. 2. The learned Commissioner of Income Tax( Appeals)-12, Bengaluru failed to appreciate the fact that in view of settled ruling of interpretation of the tax statute, the residential house purchased/constructed must be in India and not outside India. 3. The learned Commissioner of Income Tax( Appeals)-12, Bengaluru failed to consider the Memorandum explaining provisions in the Finance Bill 1982 that the exemption in section 54 is granted with a view to encouraging house construction. This would naturally mean that house construction/purchase would be encouraged by provisions of this section in India and not outside India. Further, the Memorandum explaining the provisions of the Fina....

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.... w.e.f. 01.04.2015 according to which it was clarified that the residential house is to be acquired only in India meaning thereby before this amendment it was not clear as to whether the benefit of section 54F can be given to residential house acquired in India or abroad. This issue was examined by the Tribunal in the case of ACIT Vs. Iqbal Jafar (supra) which was authored by one of the members of this Bench and it was held by the Tribunal that before the amendments, the benefit can also be given to the residential house acquired in abroad. The relevant observation of the Tribunal is extracted hereunder for the sake of reference: "9. Having heard the rival submissions and from a careful perusal of the orders of the authorities belo....

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.... the intention of the legislature should be primarily to gather from the words which are used. It is only when the words used are ambiguous that they would stand to be examined and considered on surrounding circumstances and constitutionally proposed practices. 13. We have also examined the order of the Tribunal in the case of Vinay Mishra (supra), in which it has been held that the words 'in India; cannot be read into section 54F when Parliament in its legislative wisdom has deliberately not used the words 'in India' in section 54F of the Act. The Tribunal accordingly held that assessee's claim for exemption under section 54F of the Act shall be allowed since all conditions laid down in this section are satisfied f....