9911796707
TMI Blog1983 (8) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... e. That house was sold and a new house was constructed within two years thereof. The assessee claimed exemption of capital gains amounting to Rs. 11,250 under s. 54(1) of the Act. The ITO found that the house which was sold was not used by the assessee or his parents for residence, but it was let out. He accordingly did not allow exemption under s. 54(1) of the Act. The assessee appealed to the AAC. It was urged in that appeal that the house which was sold was under the self-occupation of the assessee and not let out to any third person. The appellate authority accepted that contention and directed the ITO to grant exemption under s. 54(1) of the Act. The Revenue appealed to the Tribunal challenging the order of the AAC. The Tribunal dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or a parent of his mainly for the purpose of his own or the parent's own residence " must relate to the residence of an individual or his parents. The reference to the word " parent " must necessarily relate to the assessee who is an individual and not a statutory person or a juridical person. Mr. Sarangan for the assessee does not, and indeed could not, dispute the above proposition. He, however, submitted that the HUF, which is an assessee in the instant case, was the owner of the house in question and the HUF was in occupation of that house like any other individual. The concept of an HUF under the I.T. Act is not quite different from the concept of an HUF under the Hindu law and, indeed, both carry tile same meaning. Under the Hindu l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e an individual. We cannot think of an HUF with a parent. The word parent " is totally inappropriate in the case of an HUF. In CIT v. Sodra Devi [1957] 32 ITR 615, the Supreme Court had an occasion to consider the scope of s. 16(3)(a) of the 1922 Act, which is in the following terms: " 16. (3) In computing the total income of any individual for the purpose of assessment, there shall be included (a) so much of the income of a wife or minor child of such individual as arises directly or indirectly- . ........ The crux of the question debated before the Supreme Court in that case was whether the words " such individual " used in the opening part of s. 16(3)(a) are used to mean male of the species when they are read in juxtaposition wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt, s. 54 has been amended by the Finance Act, 1982, with effect from April 1, 1983, and the section now begins as: "Where, in the case of an assessee being an individual, the capital gain arises from the transfer of a 'long-term capital asset' to which the provisions of section 53 are not applicable, being buildings or lands appurtenant thereto, and being a residential house, the income of which is chargeable under the head ' income from house-property ' (hereafter in this section referred to as the original assets) ..........." The intention of Parliament has thus been made clear by limiting the benefit of s. 54(1) only to individuals who are assessees. This amendment appears to be a clarification of the idea which was already underly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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