9911796707
TMI Blog1982 (3) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... stressed before us that a question of law arises in each of the assignment years under appeal and that it may be referred to the Hon'ble High Court. On the other hand, the ld. counsel for the assessee submitted that the decision of the Tribunal is basically on facts independent of any observations that have been made with regard to the provisions of s. 54 and in view of the ratio decided of the judgment of the Hon'ble Punjab and Haryana High Court in the case of CIT vs. Jamna Auto Industries (1978) 112 ITR 421 (P H) the questions sought by the Commr. need not be referred to the Hon'ble High Court. 3. The disposal of the issue before the Tribunal for each of these two years was primarily on facts and, therefore, in our opinion, the questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the "value of the property in the hands of the assessee on the date of acquisition at Rs. 10,000" and has further opined that "we may take the value of the property as on 1st January 1954 in the hands of the previous owner at Rs. 5,000". Taking this as the cost as on 1st January 1954, he has added to it the cost of construction which was taken at Rs. 15,000 (Rs. 8,900 + Rs. 6,000 rounded off to Rs. 15,000 as the cost proved by the assessee). The two figures come to Rs. 20,000 (Rs. 5,000 + Rs. 15,000) and thus the cost in the hands of the assessee on the date of acquisition according to the ITO as Rs. 10,000). To our mind, this exercise in arithmetic is not justified because we have held above that cost of acquisition to the assessee of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disbelieved it because, before him, at the time of assessment, the assessee was not in a position to produce the documentary evidence. The property consisted of a shop-cum-residence and, therefore, in our opinion, there was no reason why the cost as claimed by the assessee should not be accepted. This is so because the ITO has nothing with him by way of evidence to contradict the claim made by the assessee. This also appears to be a claim acceptable because the municipal records of the Municipal Committee, Bhatinda, show that the building at that point of time was assessed for annual letting value of Rs. 600 and it was treated as new. Considering the increase in the rents, therefore, in our opinion, the claim of the assessee that the cost ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case as the assessee HUF has purchased a property with the entire sale proceeds within the two years for its residential purposes. The narrow interpretation given by the revenue to the provisions of s. 54, in our opinion, is unwarranted because the section speaks of the property being used by the assessee or a parent of his. The HUF is capable of using the property as its residence and, therefore, the alternative provision, namely, "or a parent of his" does not rob the assessee HUF of the benefit granted by this section. On this ground also there would not be any capital gains for the asst. yr. 1974-75. 20. In so far as the asst. yr. 1975-76 is concerned, the cost, on the above reckoning, of commercial portion of the property which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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