1990 (10) TMI 125

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....sessee sold 19 cents of land with a building thereon for a consideration of Rs. 4,00,000. This property was allotted to the assessee in a family partition in the year 1945. The assessee, therefore, opted for the cost as on 1-1-1964, and claimed the cost at Rs. 1,00,000. He also claimed an expenditure of brokerage of Rs. 10,000. According to the Assessee, he put up a residential building for himself at a cost of Rs. 1,75,000 within a period of two years of the transfer of the property. So he calculated the net capital gains in respect of this property as under : ---- Sale value Rs. 4,00,000 Less : Brokerage Rs. 10,000 ----------------------- Rs. 3,90,000 Cost estimated as on 1-1-1964 Rs. 1,00,000 ----------------------- ....

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....o interfere with the view of the CIT(Appeals) on the point at issue. According to the revenue, in order to invoke section 54 of the Act, the assessee has to complete the construction of the residential building within a period of two years after the transfer of the property. The Income-tax Officer found that the evidence on record will establish that the assessee could not complete the construction of the residential building within a period of two years after the transfer of the property. In support of this view, he placed reliance on the permission granted by the Trichur Municipality on 30-3-1982 extending the time for completing the construction up to 30-6-1983. The Municipality granted permission for water connection for the assessee's ....