TaxTMI 
TaxTMI 
2016 (10) TMI 635
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.... date of transfer of the original asset? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in upholding the deduction under Section 54F when the fact that the assessee owns seven flats on which income from House Property has been offered has been placed on record? 3. Whether, on the facts and in the circumstances of the case, was the Tribunal correct in granting relief to the assessee on the ground that the residential house properties were held as stock in trade? 4. Whether, on the facts and in the circumstances of the case, was the Tribunal justified in allowing the deduction under Section 54F to the assessee when the income Tax Act does not specify the nature of ownership whether held as asset ....
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....graph 5 as under: "I have considered the issue very carefully. The conditions stipulated in the proviso to Section 54F are as follows: "Provided that nothing contained in this sub-section shall apply where- (a) the assessee, - (i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or (ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or (iii) the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head "Income from house property" 5. In the further appeal before the Tribunal, the Tri....
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....the appellants-Revenue was that even if it is stock-in-trade of business, the same would also get included to apply proviso to Section 54F of the Act resultantly disentitling the person to get set off of the capital gain whereas the learned counsel appearing for the respondent-assessee submitted that stock-in-trade is not a capital asset and therefore, cannot be considered for the purpose of giving effect to the provisions of Section 54F of the Act much less the proviso therein and in his contention the Tribunal has rightly held that the benefit under Section 54F of the Act would be available to the assessee. 8. We may record that there cannot be a second opinion on the point that the capital gain should arise out of the transfer of capita....