1984 (12) TMI 9

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....sment year 1976-77 is correct in law ? " Late Mir Gulam Ali Khan, during his lifetime, sold his residential house situated at Nallakunta in Hyderabad in December, 1975, for a sum of Rs. 2 lakhs. Immediately thereafter, he entered into an agreement for purchase of another house at Purani Haveli and paid an advance amount of Rs. 1,000. He died on April 16, 1976, soon after the payment of the earnest money. The transaction was subsequently completed by the legal representatives of the deceased and the house was purchased on December 23, 1976, i.e., within one year from the date of sale of the original house. There is no dispute that the house sold was used for residential purpose and the house purchased was also for residential purpose. The....

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....after in this section referred to as the original asset) and the assessee has within a period of one year before or after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say, (i) if the amount of the capital gain is greater than the cost of the residential house so purchased or constructed (hereafter in this section referred to as the new asset), the difference between the amount of the capital gain and the cost of the new asset sh....