Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2008 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (4) TMI 363 - AT - Income TaxComputation of Capital gain - Exemption u/s 54 - Property purchased as well as the property sold would not fall within the description "residential house" - nature of property "residential or commercial" - HELD THAT:- It is not the case of the assessee that the roofed structure built on the Banjara Hills land was either self-occupied or let out and there is nothing on record to suggest that it was intended to be used as residence. Considering the market value of the property, the so-called "house" constructed on the property cannot be said to be for use of the assessee or for letting out as a residential house. Similarly, the assessee purchased two plots for a total consideration which contain small temporary structures covered with asbestos roofing in a corner of the plots. These plots also cannot be said to have been purchased to use the temporary structures as residential houses. Since the expression 'residential house' is not defined under the IT Act, a purposive meaning has to be adopted to such expression instead of going by the technical meaning assigned under various enactments or the dictionary meaning given in the dictionary. It has to be assumed that the intention of the legislature was to extend the benefit of exemption under s. 54 of the Act only when the property sold as well as the property purchased by the assessee were intended to be used as residential houses, whereas the totality of circumstances clearly indicate that they were never intended to be used as residential houses either for self-occupation or for letting of. We are, therefore, of the view that the assessee is not entitled to exemption under s. 54 of the Act on the sale value of the impugned property. Therefore, we are of the view that the property purchased as well as the property sold would not fall within the description "residential house" - In the result, the appeal filed by the Revenue is allowed.
|