2018 (5) TMI 962

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....stified in granting the benefit claimed u/s 54 by the assessee as the property sold was a residential house and there is no dispute that the assessee had made investment in the new residential house for which the deduction is being claimed. The section no where defines the quantum of construction on the land so as to be eligible to be defined as a residential unit. The only condition is that there should be a residential house capable of being used as a residence by any person. There is no even no condition that the same should be in occupation of the assessee himself and it can be used as residence even by any other person also. The registered sale deed also speaks about the residential house and there is reference of the constructed build....

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....n who has transferred his one residential house and is purchasing another residential house either before one year of the transfer or even two years after the transfer, the intention of the Legislature is to give him relief in the matter of payment of tax on the long term capital gain. If a person, who gets some excess amount upon transfer of his old residential premises and thereafter purchases or constructs a new premises within the time stipulated under Section 54 of the Act, the Legislature does not want him to be burdened with tax on the long term capital gain and therefore, relief has been given to him in respect of paying income tax on the long term capital gain. The intention of the Legislature or the purpose with which the said pro....

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....ement to sell an immoveable property in favour of one person, tries to sell the property to another. In our opinion, such an act would not be in accordance with law because once an agreement to sell is executed in favour of one person, the said person gets a right to get the property transferred in his favour by filing a suit for specific performance and therefore, without hesitation we can say that some right, in respect of the said property, belonging to the appellants had been extinguished and some right had been created in favour of the vendee/transferee, when the agreement to sell had been executed. 24. Thus, a right in respect of the capital asset, viz. the property in question had been transferred by the appellants in favour....