Section 54 deduction confined to individuals; Hindu undivided family held ineligible under the contextual meaning of "assessee".

Section 54 exemption was construed as available only to a living person or individual, because the word "assessee" in that provision was read in context and not treated as covering an artificial or fictional juridical person. Applying the binding precedent relied upon in the text, a Hindu undivided family was held ineligible for deduction under Section 54 for purchase or construction of a residential house within the stipulated period. The stated conclusion is that the deduction was not available to the Hindu undivided family.

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Issues: Whether a Hindu undivided family was entitled to deduction under Section 54 of the Income-tax Act, 1961 for purchase and construction of a residential house within the stipulated period.

Analysis: The word "assessee" in Section 54 was construed in its context as referring only to living persons or individuals and not to artificial or fictional juridical persons. Following the binding precedent relied upon by the Court, the exemption was held to be unavailable to a Hindu undivided family.

Conclusion: The assessee was not entitled to deduction under Section 54.

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