9911796707
|
Home
Issues involved: Interpretation of exemption u/s 54(1) of the Income-tax Act for capital gains arising from the sale of a residential property.
Summary: The High Court of Andhra Pradesh considered a reference made by the Income-tax Appellate Tribunal regarding the eligibility of an assessee for exemption u/s 54(1) of the Income-tax Act for the assessment year 1976-77. The assessee sold a small house property and claimed exemption by utilizing the proceeds to acquire another house for self-occupation. The Income-tax Officer contended that the crucial date for determining the purchase of the property was the date of registration of the sale deed, which fell outside the one-year period from the sale date. The Appellate Assistant Commissioner upheld this view, but the Tribunal reversed it, emphasizing that the date of possession and control over the property was significant, not just the sale deed registration date. The Tribunal found that the assessee had acquired possession of the new property within one year, even though the sale deed was registered later. The High Court agreed with the Tribunal, stating that the assessee had purchased the new residential house within the stipulated one-year period, making her eligible for exemption u/s 54(1) of the Act. Therefore, the court ruled in favor of the assessee, holding that she was entitled to the exemption under section 54(1) of the Income-tax Act, and against the Revenue.
|
