Law:

Section:

Section 54 of the Income-tax Act, 1961 - Capital gains - Profit on sale of property used for residential house - Whether for claiming exemption under section 54 house in question should be used by assessee or his parents for unbroken or continuous period of two years as residence - Held, yes FACTS The substantial question to be considered was whether the assessee could claim exemption under section 54, in respect of a residential house, even though the house in question had not been used by the assessee or his parents for an unbroken or continuous period of two years as residence. The Tribunal had taken the view that residence for an unbroken or continuous period of two years was not necessary for claiming the exemption. On reference : HELD In view of decisions in M. Viswanathan v. CIT [1979] 117 ITR 244 (Mad.), CIT v. R. Mala [1982] 135 ITR 302 (Mad.), it was to be held that the residence should be proved for an unbroken or continuous period of two years for claiming exemption under section 54. The case decided against the assessee. CASE REVIEW M. Viswanathan v. CIT [1979] 117 ITR 244 (Mad.); CIT v. R. Mala [1982] 135 ITR 302 (Mad.) andS. Radhakrishna v. CIT [1984] 145 ITR 170 (Mad.) followed and relied upon. S. Harnam Singh Suri v. CBDT [1984] 145 ITR 159 (Delhi) distinguished. CASES REFERRED TO M. Viswanathan v. CIT [1979] 117 ITR 244 (Mad.), CIT v. R. Mala [1982] 135 ITR 302 (Mad.), S. Radhakrishna v. CIT [1984] 145 ITR 170 (Mad.) and S. Harnam Singh Suri v. CBDT [1984] 145 ITR 159 (Delhi). Nalini Chidambaram and C.V. Rajan for the Applicant. P.P.S. Janarthana Raja for the Respondent. JUDGMENT Ramanujam, J. :-The following two questions have been referred to this court for its opinion by the Income-tax Appellate Tribunal at the instance of the Revenue : 1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that the sum of Rs. 37,435 was not assessable under section 45 of the Income-tax Act read with section 54 in the hands of the assessee ? 2.…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492