2021 (11) TMI 91

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....61 [for short 'the Act']. 2. The brief facts emanating from the record and pleadings of the parties are that the assessee filed its return of income for the assessment year under consideration declaring the total income of Rs. 86,000/-. The AO passed the assessment order determining the total income of the assessee at Rs. 4,72,98,280/- after making addition of Rs. 4,71,90,800/- on account of disallowance of the exemption/deduction claimed by the assessee u/s. 54 of the Act and addition of Rs. 21,478/- i.e., on account of difference of actual amount of interest received by the assessee and the amount declared by the assessee. The assessee challenged the action of the AO in making addition of Rs. 4,72,98,280/- before the Ld. CIT(A). ....

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.... a residential house for a sum of Rs. 636.64 lacs by raising a loan and utilizing the sale proceeds amounting to Rs. 575 lacs received from sale of House No. 144, Sector 27A, Chandigarh. The entire gain on sale of the house property was invested in purchasing residential house in Auckland, New Zealand. Since the assessee had purchased the house outside India, the ld. CIT(A) ought to have rejected the claim of the assessee u/s. 54 of the Act. 5. On the other hand, the ld. counsel for the assessee supporting the order passed by the ld. CIT(A) submitted that since the order passed by the ld. CIT(A) is based on the provisions of law and in accordance with the judgement of the Hon'ble Gujarat High Court in the case of Leena Jugal Kishore Sh....

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....n the absence of any contrary decision, it was his prayer that the same may be followed. A perusal of the said order further brings out the fact that the coordinate Bench sitting at Mumbai took cognizance of an earlier order also of the Mumbai Bench in the case of ITO versus Nishant Lalit Jadhav in ITA 6883/Mum/2014 which also relied on the aforesaid decision. Accordingly, in the peculiar facts and circumstance of the present case which have been set out herein above considering the position of law as also discussed in detail in the earlier portion of this order, we find that in the peculiar facts of the present case the claim of the assessee has to be allowed. It is seen that the amendment by the Finance Act of 2014 in section 54F comes in....