2020 (2) TMI 246

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....rities were justified in denying the claim of assessee for deduction u/s. 54/54F of the Income-tax Act, 1961 [the Act]. 3. The assessee is an individual. He sold a site measuring 3903 sq.ft. bearing No.53, CMC Khatha No.364, New BBMP Khatha No.396 in Sy.No.19/1, Ferns City, Doddanekundi Village, Krishnarajapura Hobli, Bangalore East Taluk [hereinafter referred to as "the property"] under Sale Deed dated 05.11.2012 for a consideration of Rs. 2 crores. The assessee claimed deduction u/s. 54/54F of the Act on the capital gain on sale of the property as he invested the capital gain in purchase of a residential house in Texas on 12.7.2013. The AO went into the quantum of capital gain and also into the question, whether the assessee would be e....

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....ce to the quantum of capital gain computed by the AO, the CIT(A) gave some relief to the assessee. 6. Aggrieved by the order of CIT(Appeals), the assessee is in appeal before the Tribunal. 7. We have heard the rival submissions. The ld. counsel for the assessee placed reliance on the decision of the Bangalore Bench of the Tribunal in the case of ITO(IT), Ward 1(1), Bangalore v. Arshia Basith, IT(IT)A No.2768/Bang/2017 AY 2014-15, order dated 14.8.2018 wherein this Tribunal held that assessee would be entitled to benefit of deduction u/s. 54/54F of the Act on the property purchased outside India and that the amendment made to section 54F of the Act by the Finance Act, 2014 w.e.f. 2015 is applicable only prospectively from AY 2015-16 an....

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...."3. Having carefully examined the orders of authorities below in the light of rival submissions, we find that the assessment year in this appeal is 2014-15 and the provision in section 54F comes 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 relev....

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....ra Devi (supra), it was held by the Hon'ble Apex court that unless there is an ambiguity, it would not be open to the Court to depart from the normal rule of construction which is that 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....