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TMI Blog2020 (9) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... idential house, which was incorporated by way of amendment, came into force w.e.f. 01.04.2015. In the light of aforesaid well settled legal principles as well as the memorandum of objects of Finance Act, 2014, which clearly provide that amendments will take effect from 01.04.2015 and will apply to Assessment year 2015-16 onwards as well as the CBDT's Circular dated 21.01.2015, it is evident that amendment incorporated in Section 54F(1) of the Act is prospective in nature. Substantial question of law framed by this court is answered in the affirmative and against the revenue. - I.T.A. NO. 75 OF 2013 - - - Dated:- 31-8-2020 - THE HON'BLE MR. JUSTICE ALOK ARADHE And THE HON'BLE MR. JUSTICE H.T.NARENDRA PRASAD FOR THE PE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 6,53,96,362/- 3. Being aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), who by an order dated 16.06.2012 inter alia held that decision of the Mumbai Bench of the Tribunal is applicable only to non residents and is not applicable to the facts of the case as assessee is a resident of India. It was further held that investment should be made in India for claiming the benefit of exemption under Section 54(1) of the Act. In the result, the appeal was dismissed. The assessee thereupon filed an appeal before Income Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal', for short). The Tribunal vide order dated 12.10.2012 held the assessee entitled to exemption under Section 54F o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... graph 12 of the aforesaid decision, it is submitted that in the matter of interpretation of a charging section of a taxation statute, strict rule of interpretation is mandatory and if there are two views possible in the matter of interpretation of charging section, the one favorable to the assessee needs to be applied. It is further submitted that the amendment to Section 54F of the Act made by Finance Act, 2014 w.e.f. 01.04.2015 is prospective in nature and the aforesaid issue is no longer res integra and has been answered in favour of the assessee in cases of 'LEENA JUGALKISHOR SHAH VS. ACIT', 392 ITR 18 (GUJ), 'DIPANKAR MOHAN GHOSH IN RE', 401 ITR 129 (AAR-NEW DEL) AND 'CIT VS. ANURAG PANDIT IN I.T.A.NO.1169/2018 DATE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th in accordance with the following provisions of this section, that is to say,- .................................. ................................. Post 01.04.2015 54F(1) Subject to the provisions of sub- Section (4) where, in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, one residential house in India (hereafter in this section referred to as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it ought to be construed as prospective only. The aforesaid principle was quoted with approval by the Supreme Court in 'Vatika Township P. Ltd.', supra. It is a cardinal principal of law that law to be applied is that in force in the Assessment year, unless otherwise provided expressly or by necessary implication. [See: 'Reliance Jute Industries Ltd. vs. Commissioner of Income Tax', AIR 1980 SC 251]. The aforesaid view was quoted with approval in 'Commissioner of Income Tax vs. Sarkar Builders', (2015) 7 SCC 579. 8. The relevant extract of CBDT Circular No.1/2015 dated 21.01.2015 reads as under: 20.5 Applicability: These amendments take effect from 1st April, 2015 and will accordingly apply in relation to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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