TaxTMI 
TaxTMI 
1988 (4) TMI 107
X X X X Extracts X X X X
X X X X Extracts X X X X
..../3rd. After adding the various expenses etc., the cost of acquisition came to Rs. 2,26,800, so that the assessee's 1/3rd share in the cost of acquisition came to Rs. 75,600. The assessee sold his 1/3rd share in the said residential house property in July, 1977 by means of a deed of relinquishment (which was registered on20th July, 1977) to the other co-owners for Rs. 1,00,000. Thus the liability for capital gains arose. The assessee purported to purchase residential flat No. B-22, Kailash Apartments for Rs. 1,11,700 on20th July, 1977. Therefore, the question arose whether the assessee was entitled to claim exemption under s. 54 since the new asset was claimed to have been purchased within the time specified under s. 54. The ITO noticed that....
X X X X Extracts X X X X
X X X X Extracts X X X X
....efor. He, therefore, held that the assessee was entitled to claim deduction under s. 54(1) to the extent claimed. On the other hand, following the Special Bench decision of the Tribunal in the case of R.K. Sawhney (1982) 2 ITD 207, he held that the notional income from flat No. B-22, Kailash Apartments was assessable as "Income from house property" and that therefore the assessee was entitled to all the statutory deductions. 4. That is how the Department has come up in appeal before us. On behalf of the Department, Smt. Archana Ranjan, the learned Departmental Representative submitted that the ITO was justified in not allowing deduction under s. 54 as the assessee could not be said to be the owner of flat No. B-22, Kailash Apartments. So f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ook place it shall be dealt with in accordance with the provisions specified thereunder." This is the only condition which, on the facts of the present case, required to be established by the assessee i.e. whether residential flat No. B-22, Kailash Apartments came to the assessee, must amount to a sale. Sec. 2(47), which defines "transfer" in relation to a capital asset would not be relevant for our purposes because the transfer of the assessee's 1/3rd share in the residential house property M-126, Greater Kailash is not in question and is admitted. Sec. 53A of the Transfer of Property Act, 1882 deals with the equity of part performance. The right conferred by that section is the right available to a person only to protect his possession an....