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| The Tax Publishers2019 TaxPub(DT) 3729 (Del-HC) INCOME TAX ACT, 1961
Section 54
Where capital gain arose on sale of a house was invested by assessee in purchasing a residential property located outside India, the assessee would be entitled to exemption under section 54 as the said capital gain was invested prior to 1-4-2015, i.e., amendment made under section 54.
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Capital gains - Deduction under section 54 - Investment made in residential house located outside India -
Assessee-non-resident sold his house, which was located in India and capital gain arose on such sale was invested in purchasing a residential property outside India. Accordingly, he claimed exemption under section 54, which was denied by Revenue alleging that the residential property said was located outside India. Held: The amendment made under section 54 by inserting the words 'in India' to follow the words 'has within a period of three years after that date constructed a residential house' was prospectively with effect from 1-4-2015. Prior to such amendment, the only condition stipulated was investment in a residential house and when section 54 was clear and unambiguous, there would be no scope for importing into the statute the words, which were not there. Therefore, the assessee would be eligible to avail exemption under section 54.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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