TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Court Upholds Exemption for House Purchase: Residence Before Buying Not Disqualifying</h1> <h3>Commissioner Of Income-Tax Versus Chandanben Maganlal</h3> Commissioner Of Income-Tax Versus Chandanben Maganlal - [2000] 245 ITR 182, 162 CTR 542, 120 TAXMANN 38 Issues Involved: The judgment addresses the issue of whether an assessee is entitled to claim exemption under section 54 of the Income-tax Act, 1961, when purchasing a portion of a house property previously used for residence.Summary:Facts: The respondent-assessee purchased a house property using a cash gift from her husband, later selling it and buying a 15% share in another property where she continued to reside. The Income-tax Officer rejected her exemption claim, arguing the property was already used for residence before purchase.First Issue - Purchase of Portion of House: The court held that purchasing a portion of a house should enable the assessee to claim exemption under section 54. The judgment cited a previous case where a portion of a house was considered a unit of house property, supporting the assessee's claim for exemption.Second Issue - Residence Prior to Purchase: The court determined that residing in a house before purchase does not disentitle an assessee from claiming exemption under section 54. The absence of any restriction in the Act against purchasing a previously occupied house property supports the assessee's entitlement to exemption.Conclusion: The Tribunal's decision to grant the assessee exemption under section 54 was upheld by the court. The judgment favored the assessee, emphasizing that the purchase of a portion of a house and residing in the property prior to purchase do not negate the right to claim exemption. The reference was answered in favor of the assessee, with no costs awarded.
TaxTMI 