2024 (9) TMI 1109 - AT - Income Tax

LTCG - allowability of sec.54 deduction - deduction claim of re-investment of the said capital gains in a residential house in USA - Revenue s case before us places strong reliance on the statutory amendment in sec.54(1) vide Finance (No.2) Act, 2014 w.e.f. 01.04.2015 that such an option of re-investment of capital gains for purchasing a residential house abroad is no more available w.e.f. 01.04.2015. HELD THAT - We are of the considered view that once the statutory provision itself stands amended and the assessee has made her investment which is no more allowable, stricter interpretation in light of Commissioner of Customs (Imports), Mumbai vs. Dilip Kumar And Co. Ors. 2018 (7) TMI 1826 - SUPREME COURT would indeed hold the field. We thus conclude that both the learned lower authorities have rightly disallowed the assessee s sec.54 deduction claim for her re-investment of long term capital gains in a residential house abroad going by the relevant statutory provision. Assessee appeal dismissed.

Summary

The ITAT Mumbai dismissed the assessee's appeal for AY 2015-2016 regarding sec.54 deduction claim for reinvestment of capital gains in a residential house abroad, citing statutory amendment in sec.54(1) from 01.04.2015. The assessee's claim was disallowed as the investment was made after the statutory provision was amended. The appeal was dismissed on 26.07.2024.