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TMI Blog1978 (4) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of Rs. 1,86,044 to capital gains tax ? " The assessee is a co-operative society registered under the Co-operative Societies Act. It owned a building in Mission Road, Mangalore. That was sold for a sum of Rs. 6,32,000 on March 30, 1970. The assessee, however, purchased another house within one year from the date of sale and claimed the benefit of section 54 of the Income-tax Act, 1961. The Income-tax Officer did not recognise the claim and, on appeal, the Appellate Assistant Commissioner held that the assessee was not entitled to the benfit under section 54 of the Act on the ground that the said section applied to individual or natural persons and not to a juridical person such as the co-operative society. On further appeal, the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... drink and sleep (per Bayley J. in R v. North Curry [1825] 4 B & C 959). ' A man's residence is where he habitually sleeps' (per Blackburn J. in Oldham [1869] 1 O' M & H 151, 158). " The above definitions were quoted with approval and depended upon by the High Court of Calcutta in Calcutta Stock Exchange Association Ltd., In re [1935] 3 ITR 105, 110, 111 (Cal). The learned judges observed as follows : " In my opinion, the word ' residence ' in its simple and ordinary meaning signifies the place where a human being eats, drinks and sleeps or where his family and servants eat, drink and sleep, and where there is some permanence or continuance of such eating, drinking and sleeping and the statement of Bayley J. in the case of The King v. Inh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purpose of carrying on business and it cannot reside apart from carrying on business. Thus, in both sections 4 and 42 of the Indian Income-tax Act, it is clear that the word ' reside ' is only used in connection with the carrying on of a business and not otherwise. " The definition in section 6 of the Act is also to the same effect and the said definition cannot ipso facto be applied so as to confer a benefit under section 54 of the Act, without reference to the context in which the expression " residence " is found in that section. Section 54, by its very terms, speaks of a residence of an individual or his parent. The expression " parent " can only be understood in relation to a human being and not in the case of an artificial person ..... X X X X Extracts X X X X X X X X Extracts X X X X
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