Exemption Eligibility Available Under Section 54F for the House Property Investment in the USA: KAR HC

According to section 54F of the Income Tax Return (ITR) The income tax department has declared that ITR 1, 2, 3, 4, 5, 6 & 7 for AY 2019-20 is now available for e-Filing and soon other ITRs will also be available, the assessee is free to do the investment in the house property in the USA said by Karnataka High court.

The assessee is a Director of M/s Markets Technologies (India) Pvt. Ltd Bangalore. He filed the return of income for the Assessment year 2009-10 claiming total income of Rs.1,53,44,940 below the source income from salary, business, capital gains, and additional roots.

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In section 143(1) the process of return of income was done and the case comes under the scrutiny process through issuing the notice. The officer refused the exemption of Rs 11,30,20,000 with respect to investment done in residential property stating that the investment in property outside India is not available and then built a demand for Rs 6,53,96,362.

The suspects filed an appeal in front of the Commissioner of Income Tax. Anyone made an investment outside India will have to claim the benefit of exemption under Section 54(1) of the Act. but the appeal was rejected by them. The assessee immediately filed an application before Income Tax Appellate Tribunal, in which it held that the assessee allowed an exemption under Section 54F of the Act and granted the claim favored by the assessee.

The administrations say that according to law the assessee is applicable to pretend the freedom under the Section 54F “The Income Tax Appellate Tribunal (ITAT), Bangalore, has ruled that according to the 2015 amendment made in section 54F of the Income Tax Act 1961, the benefit of the income tax with regard to the investment for the house property in the USA. The investment was done before 1 April 2015, for the residential house in the USA while the need for planning an investment in the property which was organised by means of amendment, evolved into power from April 1, 2015, noticed by the division judge bench of Justice Alok Aradhe and Justice H.T. Nagendra Prasad.

“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 April 01, 2015, and will apply to Assessment year 2015-16 onwards as well as the CBDT’s Circular dated January 21, 2015, it is evident that amendment incorporated in Section 54F(1) of the Act is prospective in nature,”.