9911796707
TMI Blog1983 (7) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... itially she deposited a part of the amount in fixed deposit on5-10-1978for 63 months. Later she started construction of her own house at C-1/26, Phase II, Ashok Vihar,New Delhiand spent Rs. 68,000. It further transpires that she got the property at C-1/26, Phase II, Ashok Vihar by way of gift from her father, Shri P.V. Saran ofLudhiana, by document dated8-11-1978. The formal transfer could not be effected in favour of the assessee because of certain formalities to be complied with as per the regulations of the DDA. However, it was the assessee who constructed the property on the plot of land with her own money for residential purposes. 3. On the above facts, the assessee claimed that the capital gains arising on the transfer of the house ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the DDA also approved the transfer recently. 5. In our view, the assessee is clearly entitled to the benefit of section 54(1). The relevant provisions of section 54(1) as existed prior to the amendment made by the Finance Act, 1983 read as follows : "(1) Where a capital gain arises from the transfer of a capital asset to which the provisions of section 53 are not applicable, being buildings or lands appurtenant thereto the income of which is chargeable under the head 'Income from house property', which in the two years immediately preceding the date on which the transfer took place, was being used by the assessee or a parent of his mainly for the purposes of his own or the parent's own residence (hereafter in this section referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... residential purposes of the assessee or his parents. Secondly, the income from the property should have been assessed under the head 'Income from house property'. Thirdly, the assessee should have either purchased a house within a period of one year after the date of transfer or constructed a house for the purpose of the residence within a period of two years after the date of transfer. From the facts brought on record it is clear that the assessee complied with all the requirements of section 54(1). There was no dispute that the house property at 44-BD, Old Geeta Colony was utilised for the assessee's residential purposes. The income from the said property was chargeable under the head 'Income from house property'. The house constructed b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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