TaxTMI 
TaxTMI 
1986 (7) TMI 163
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.... respect of sale of a property which was partly occupied by the assessee and partly tenanted. 2. The assessment year involved is 1978-79. The assessee owned a house bearing No. 8/3, East Patel Nagar, New Delhi, which was sold for Rs. 1,60,000 on 16-5-1977. The date 16-5-1977 falls in the accounting year relevant to the assessment year under consideration. Ground floor of this property was rented ....
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....to deal with the meaning of the word 'mainly' while interpreting section 54 of the Income-tax Act, 1961 ('the Act'). The learned departmental representative submitted that though the revenue is not in appeal and the assessee cannot be placed in worst position than what he is, but as a matter of fact, in the light of the said decision, exemption to the extent of even 50 per cent of the capital gain....
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.... allowed by the Tribunal and out of the Tribunal's order following two questions were referred to their Lordships under section 256(1) of the Act : "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the meaning of the term 'mainly' includes property partly occupied for residence and that it qualifies for exemption under section ....
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....et which was the subject-matter of the transfer. As, in this case, the entire house was sold, the word 'which' qualifies the entire house property and not any part thereof. 2. In view of the dictionary meaning of the word 'mainly', it is clear that the property sold should have been put to use principally as residence for two years immediately preceding the date of the transfer. As, in the instan....