1992 (2) TMI 168

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....sessee is an individual. In the previous year ended 31-3-1987 relevant to the assessment year 1987-88, the assessee sold a vacant site at Puliyur, Kodambakkam, Madras. He then utilised the consideration received for constructing a first floor in a property at No. 2, Raghava Reddy Colony, Madras-95 belonging to him. The ground floor of that property has been let out to a Post Office. He claimed exe....

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....o submitted that since the assessee had no other property to reside at the time of the construction of the residential unit, he was entitled to the exemption. On the other hand, it was pointed out on behalf of the Revenue that under section 54F, the assessee was entitled to exemption only if he did not own another residential property and since the assessee actually owned a residential property, h....

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....ntial house as it was not available for his residence. I am unable to accept this view of the proviso for it will require reading into it a qualification for the residential house as one available for residence. Again, if such a view is taken, it would be easy for anyone to let out a residential house at the crucial time and escape this proviso. As can be seen from the Circular No. 346, dated 30-6....

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....t he could invest in a house to live and get exemption. This indicates a situation where in view of the high complexity of the tax laws, lack of tax education has led the assessee to believe that he was entitled to the exemption. Unfortunately while the Indian Tax system has copied the American pattern of voluntary tax compliance at the peril of stiff penalties, it has not followed the American pr....