Exemption under section 54 was held not to be denied merely...

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.