1990 (3) TMI 19

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....ecember 15, 1973, she sold a house for Rs. 90,000 and that resulted in a net capital gain of Rs. 29,900. The assessee claimed the benefit of exemption under section 54 of the Income-tax Act, 1961 (hereinafter referred to as, "the Act"), on the ground that another property was purchased from the Tamil Nadu Housing Board for Rs. 24,000. The Income-tax Officer negatived this claim of the assessee on ....

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....roperty was mainly used for purposes of residence of the assessee and, therefore, the order of the Appellate Assistant Commissioner deserved to be upheld. That is how the following question of law has been referred to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee is entitled to exemption un....

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....m capital gains" and that the assessee had, within a period of one year before or after the date of the sale of the capital asset, purchased a house property for purposes of her own residence. The only controversy debated before the authorities was the user by the assessee of the house in the two years immediately preceding the date of transfer mainly for purposes of her own or her parents' reside....

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....or "chiefly". In the house comprising 1,885.31 sq. ft., indisputably the assessee was in occupation to an extent of 1,053 sq. ft. in the first floor as per the finding of the Tribunal and that cannot be considered not to constitute user by the assessee mainly for purposes of her own residence The underlying principle in section 54 of the Act is that the benefit of that provision should not be lost....