9911796707
TMI Blog1990 (10) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is entitled to the exemption under section 54 of the Income-tax Act, 1961, relating to the assessment year 1981-82. 2. While pending disposal of this appeal, the assessee died and his legal representatives were brought on record. The assessee is an individual. During the accounting period ended on 31-3-1981, the assessee sold 19 cents of land with a building thereon for a consideration of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... --- The Income-tax Officer allowed exemption only in a sum of Rs. 10,000, being the brokerage expenditure. Further, the Income-tax Officer estimated the cost of the property as on 1-1-1964 at Rs. 75,000. He also disallowed the claim of the assessee for exemption of Rs. 1,75,000 under section 54 on the ground that the building was not completed within a period of two years after the transfer of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee placed reliance on the order of the CIT(Appeals) on this point. 4. On a careful consideration of rival submissions, we hold that there is no reason to interfere with the view of the CIT(Appeals) on the point at issue. According to the revenue, in order to invoke section 54 of the Act, the assessee has to complete the construction of the residential building within a period of two years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emporary electric connection and the same was paid by the assessee on 15-11-1983. The above factors according to the Income-tax Officer will lead to the conclusion that without water connection and electric connection the assessee could not have occupied the house newly constructed by him for his residence. The point that arises for consideration is whether the assessee has completed construction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no ground to presume that the assessee has not completed the construction of the new house within a period of two years after the transfer of the property admittedly on 21-11-1980. The reason is that electricity and water facilities are only amenities which one may or may not prefer to have. The registration was also effected on 21-11-1980. The demand of the Municipality tax from 1-10-1982 onwards ..... X X X X Extracts X X X X X X X X Extracts X X X X
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