The assessee is an individual. He sold a site and 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 denied the exemption . On appeal the Tribunal held that The words “in India” cannot be read into section 54F when Parliament in its legislative wisdom has deliberately not used the words. The assessee is entitled to exemption of the Act though he has acquired house property in a foreign country- The amendment to S. 54F by the Finance Act, 2014 w.e.f. 2015 is applicable only prospectively . ( ITA No 2015 of 2019 dt 10 -1 2020 ) (AY.2013-14)
Rajasugumar Subramani, v. ITO ( Bang) (Trib) www.itatonline .org
S.54F : Capital gains- Investment in a residential house – The words “in India” cannot be read into section 54F when Parliament in its legislative wisdom has deliberately not used the words. The assessee is entitled to exemption of the Act though he has acquired house property in a foreign country- The amendment to s. 54F by the Finance Act, 2014 w.e.f. 2015 is applicable only prospectively [ S.45 ]