Capital Gain - exemption u/s 54 ::

Court :
Tribunal

Brief :
Section 54 does not prohibit from purchasing property in a foreign country however all other conditions should be satisfied.

Citation :
Mrs. Prema P. Shah (2) Sanjiv P. Shah Vs. I.T.O.

Capital Gain - exemption u/s 54 (1) Mrs. Prema P. Shah (2) Sanjiv P. Shah Vs. I.T.O. 11/29/2005 (2006) 282 ITR (AT) 211 (Mumbai) Case Fact: Whether it is necessary to purchase new residential property in India to utilise the sale proceeds as received on sale of residential property, not acquired in convertible foreign exchange, for claiming exemption u/s 54(1) and whether the new property can be acquired on perpetual lease? Decision: Held by the Ho"ble Bench that section 54 does not prohibit from purchasing property in a foreign country however all other conditions should be satisfied.The Bench also observed that the assessee should be the absolute owner of the new property in order to claim the exemption.

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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