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TMI Blog1973 (3) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... and a vacant site adjoining the said properties. The two houses were separately assessed to panchayat tax. The assessee sold away these three items of properties during the year of account relevant to the assessment year 1962-63 to three different persons under three separate sale deeds on different dates. The house properties were sold for Rs. 14,000 each and the land for Rs. 6,000, thus realising a total consideration of Rs. 34,000. In addition, the assessee obtained a sum of Rs. 500 by way of forfeiture of deposit in respect of one of the transactions. Thus in all the assessee got a sum of Rs. 34,500 by the sale of these properties. Adopting the value of these properties as on January 1, 1954, at Rs. 20,000 the assessee returned an inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd, contended that even though the amount of capital gain arising from transfers would have to be calculated item by item, for the application of section 53 of the Act it is the aggregate value of the consideration of all the transactions that has to be taken into account. We have to consider this question with reference to the scheme of the Act and in particular the provisions of sections 45, 48 and 53. The scheme of the Act, in our opinion, envisages each transaction separate and independent. Sections 45 and 48 take note of this position and provide for finding out the capital gain in respect of each transaction. Capital gain for the year is determined by finding out the gain in respect of each of the transactions during the year and addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of all the buildings and lands appurtenant thereto owned by the assessee immediately before the transfer aforesaid is made does not exceed the sum of Rs. 50,000. All these conditions will have to be cumulatively satisfied. If any one of the conditions is not satisfied the exemption will not be available. Both the main part of the section and the proviso use the expression "transfer" in singular though the transfer may comprise of more than one capital asset. The proviso requires that the third condition referred to above shall be satisfied with reference to a particular transaction and with reference to the date of that particular transfer. It does not say that at the beginning of the accounting year the assessee shall not have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is therefore attracted. So for the first transaction the section is not applicable. For the second transaction since at the time of the second transaction the assessee had parted with Rs. 15,000 worth of property, he was in possession of only Rs. 45,000 worth of assets and, therefore, the proviso to section 53 is satisfied. Even assuming that the aggregate value of Rs. 15,000 and Rs. 5,000 is to be taken for the purpose of finding out the applicability of the main part of the section, still since it is less than Rs. 25,000 the assessee would be entitled to exemption for the entire Rs. 20,000 though on a strict interpretation of the proviso the first sale for Rs. 15,000 was not entitled to any exemption. Similarly, take another illustration ..... X X X X Extracts X X X X X X X X Extracts X X X X
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