Residential-house capital gains exemption under section 54...

Residential-house capital gains exemption under section 54 depends on the prescribed transfer and reinvestment conditions, not on filing an original return under section 139(1). A reassessment return under section 148 is treated, so far as applicable, as a return under section 139, so an exemption relating to reassessed income cannot be rejected solely because no original return was filed. The deposit requirement for unutilised gains does not apply where the entire gain is reinvested in another residential house within the prescribed period and before the return-filing due date. A challenge solely to the initiation of penalty proceedings concerning the reassessed gain is premature and does not determine the merits of the penalty.