9911796707
TMI Blog2002 (4) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... on date relevant to the assessment year commencing on the 1st day of April, 1971. The question referred to us is, therefore, answered in the affirmative, against the Revenue and in favour of the assessee. - - - - - Dated:- 19-4-2002 - Judge(s) : R. K. ABICHANDANI., KUNDAN SINGH. JUDGMENT The judgment of the court was delivered by R.K. ABICHANDANI J:-The Income-tax Appellate Tribunal, Ahmedabad Bench "C" has referred the following question under section 27 of the Wealth-tax Act, 1957, for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the house property was used for residential purpose and, therefore, the assessee was entitled to the benefit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he orders of the Appellate Assistant Commissioner were challenged before the Tribunal and the Tribunal, by its order dated June 18, 1986, dismissed the appeals of the Revenue, holding that the words "exclusively used by him for residential purposes throughout the period of twelve months immediately preceding the valuation date" should be interpreted pragmatically, fairly and reasonably and not in a pedantic sense. It was held that the term "used" did not mean that the assessee should be in physical possession of the house or any part of it and it only meant that the house was used by him as a residence and not with a view to make any income or profit out of it. Section 7 of the said Act lays down as to how the value of assets should be d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely used by him for residential purposes throughout the period of twelve months immediately preceding the valuation date", if construed in a narrow manner, would lead to an absurd situation expecting the assessee to remain in actual physical occupation throughout the year. A person using a house for his residential purpose does not cease to use the same for such purpose when he is away from his residential house. Use of a house for residential purpose does not require compulsory residence in that house and it only requires that the house should be exclusively reserved and available for the residential purposes of the assessee all the time. The essential aspect of the matter would be whether the assessee has retained exclusive control over t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has kept it available to himself for occupation whenever he desired. The Madras High Court, approvingly referred to the reasoning of the Andhra Pradesh High Court in CWT v. B. M. Bhandari [1980] 123 ITR 554, in which the expression in section 5(1)(iv) of the said Act "exclusively used by him for residential purposes" was considered, and it was held that the requirement of exclusive use by the assessee of the house property for residential purposes must be construed pragmatically, fairly and reasonably and not in a pedantic sense or impracticably. It was observed that the assessee need not be expected to use his building throughout the year or without any interruption and he may not actually use the house by himself, and that unless he let o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
