2000 (11) TMI 22

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.... to the directions given by this court under section 256(2) of the Income-tax Act, 1961 (in short "the Act"), the following questions have been referred for the opinion of this court: "(i) Whether, on the facts and in the circumstances of the case, the Tribunal was legally right in treating that the construction of the flats in 'Akash Deep Building' was made by the assessee? (ii) Whether, on....

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....erred to as the " assessee"), was her executrix. Out of the sale proceeds, a sum of Rs.5,25,000 was paid to Ansal and Sehgal Properties (P.) Ltd. Akash Deep Building was constructed on the site of 9, Hailey Road, after demolishing the building thereon. The new building was ready for occupation on December 4, 1970. The heirs of the late Maharani occupied the new flats on the third floor of th....

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....ucted within two years of the date of transfer of 9, Hailey Road, the provisions of section 54(1) would apply. The Tribunal upheld the conclusion with the following observations: "We do not find any force in these submissions. In our opinion, it is immaterial whether the construction is made by the assessee himself or it is got made through some one else. A handy example will be where a person ....

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....stant Commissioner that the provisions of section 54(1) are attracted, as the new flats were constructed within two years of the sale of 9, Hailey Road, New Delhi." An application under section 256(1) was rejected and on being moved under section 256(2) of the Act, this court directed for referring two questions, as set out above. According to learned counsel for the Revenue, the true import....