1984 (5) TMI 125

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....nder section 54 of the Income-tax Act, 1961. The assessee is an individual who sold his house in 1/6, Ramanan Road, Madras-1, on 17-12-1975 for Rs. 1,50,000. He then purchased a flat in No. 401, 'B' Block, 'Shivalaya', C-In-C Road, Madras-8, on 2-3-1976. Section 54 states that where the assessee sells a residential house being used by him mainly for the purpose of his own residence and purchased w....

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....urpose of his own residence, the benefit of section 54 should be denied only because the assessee was using one room of 250 sq. ft. as office for the purpose of conducting his own money-lending business. We are unable to comprehend this objection of the revenue because it is totally at variance with the object of section 54 which is to ignore capital gains arising from the sale of residential hous....