Exemption under section 54 was held not to be denied merely...
Purposive interpretation of residential house exemption: unregistered purchase agreement alone does not defeat relief, but investment must be verified.
Contents
Summary
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
Exemption under section 54 was held not to be denied merely because the agreement to purchase the new residential house was unregistered. The Tribunal applied a purposive interpretation and treated substantial investment in, and acquisition of rights over, the property as sufficient where the sale consideration was invested within the prescribed period. It also noted that the genuineness of the investment claim had not been examined by the Assessing Officer and required fresh verification of the payments, surrounding circumstances, and veracity of the transaction. The matter was therefore restored for reconsideration after giving the assessee an opportunity of hearing.
Exemption under section 54 was held not to be denied merely because the agreement to purchase the new residential house was unregistered. The Tribunal applied a purposive interpretation and treated substantial investment in, and acquisition of rights over, the property as sufficient where the sale consideration was invested within the prescribed period. It also noted that the genuineness of the investment claim had not been examined by the Assessing Officer and required fresh verification of the payments, surrounding circumstances, and veracity of the transaction. The matter was therefore restored for reconsideration after giving the assessee an opportunity of hearing.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4803
Join Channel
TaxTMI 
