2006 (3) TMI 89

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.... January 21, 2004 passed by the second respondent-Commissioner of Income-tax, Mysore, vide annexure D, the revised assessment order dated July 27, 2004, passed by the first respondent-Income-tax Officer, Mysore, vide annexure E and the order dated July 8, 2005, passed by the third respondent-Income-tax Appellate Tribunal, Bangalore Bench, Bangalore, vide annexure K to the writ petition. He also pr....

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....ground that the said section and its proviso are vague and are discriminatory inasmuch as they apply only for the assessment year 2000-01. The relevant portion of section 54F of the Act as it stood in the year 2000-01 reads thus: "54F. Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house.-(1) Subject to the provisions of sub-section (4)....

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.... (b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under section 45: Provided that nothing contained in this sub-section shall apply where the assessee owns on the date o....

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....e the assessee from claiming relief under section 54F of the Act. The policy of permitting exemption in respect of one dwelling house is vested in the Central Government. This policy legislated cannot be said to be vague, inasmuch as, it is definitive in character. The contention of learned counsel for the petitioner that in the subsequent years exemption under section 54F of the Act was extend....