1976 (9) TMI 80

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....g Board was purchased. The Income-tax Officer disallowed the exemption on the ground that a portion of the property sold was rented out till the dated of sale and the income there-from was offered for assessment and that, therefore, it cannot be said that the assessee was using the property for her residence for a period of two years prior to the date of sale. 2. On appeal the Appellate Assistant Commissioner found that the assessee had satisfied the conditions laid down under s. 54 of the Income-tax Officer Act, 1961. In that the property was mainly used for the purpose of the assessee's own residence. He, therefore, directed the Income-tax Officer to recompute the capital gains after granting the exemption under s. 54 of the Act. 3.....

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....being used by the assessee or a parent of his family for the purposes of his own or the parent's own residence, and the assessee has within a period of one year before or after that date purchased, or has within a period of 2 years after that date constructed, a house property for the purposes of his own residence, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,- (i) if the amount of the capital gain is greater than the cost of the new asset, the difference between the amount of the capital gain and the cost of the new asset shall be charged under s. 45 as the i....

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....have been mainly used by the assessee for the purpose of her own residence. We have to wee whether the assessee could be said to have used the property in question mainly for the purpose of her residence. It is not in dispute that the property consisted of a ground floor and a first floor. It is admitted that the ground floor is let out and the first floor is self-occupied by the assessee. The learned counsel for the assessee drew our attention to the fact that the carpet area of the first floor occupied by the assessee is of the extent of 1053 sq. ft. Whereas the carpet area of the ground floor let out is of the extent of Rs. 832.31 sq. ft. On this basis it is clear that the major portion of the property was used for the purpose of the ass....