2012 (2) TMI 676 - AT - Income Tax

Summary

Issues involved: Interpretation of provisions of section 54 of the Income Tax Act, 1961 regarding exemption for property purchased in a foreign country.

Summary:
The appeal was against the order of the CIT(A) pertaining to A.Y. 2007-08. The Revenue contended that exemption u/s 54 should not be granted for a property purchased in Canada. The CIT(A) relied on the decision of ITAT Mumbai Bench in the case of Prema P. Shah and Sanjiv P. Shah vs. ITO to allow the exemption. The Revenue argued that the decision of ITAT Ahmedabad Bench in the case of Leena J. Shah was ignored. The assessee's counsel cited the decision of ITAT Mumbai Bench in the case of ITO vs. Dr. Girish M. Shah and the principle from the case of CIT vs. Vegetable Products Ltd. to support the exemption. The Tribunal, considering the previous decisions, upheld the order of the CIT(A) and dismissed the appeal by the Revenue.

The Tribunal concluded that the order of the CIT(A) did not require any interference based on the subsequent decision of the ITAT Mumbai Bench. The appeal by the Revenue was dismissed, and the order was pronounced in the open court on 16th February 2012.