TaxTMI 
TaxTMI 
1975 (3) TMI 27
X X X X Extracts X X X X
X X X X Extracts X X X X
....t the instance of the assessee, the Income-tax Appellate Tribunal, Bangalore Bench (hereinafter referred to as " the Tribunal "), has under sub-section (1) of section 256 of the Income-tax Act, 1961 (hereinafter referred to as " the Act "), referred to this court the following question of law : " Whether, on the facts and in the circumstances of the case, the assessee was entitled to exempti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....claim of the assesee for exemption from income-tax on the capital gains arising out of the sale of the first flat was under section 54 of the Act. The material portion of that section reads : " 54. Profit on sale of Property used for residence.---Where a capital gain arises from the transfer of a capital asset to which the provisions of section 53 are not applicable, being buildings or lands ap....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion that two conditions have to be satisfied by an assessee to claim exemption thereunder. Undoubtedly, the assessee satisfied the condition, that within a period of one year before or after the sale of the first flat another flat was purchased. The only other condition she had to satisfy to claim exemption under that section was that in the two years immediately preceding the date on which she s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ribunal was unsustainable because the assessee was using the flat mainly for her own residence in spite of her having leased it to her husband. Mr. Sarangan maintained that all the ingredients of that condition were satisfied inasmuch as the flat was used mainly for residential purpose and it was also used for the assessee's own residence. On two grounds we find it difficult to accept the conte....