TMI Blog1975 (3) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... nch (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 exemption under section 54 of the Income-tax Act, on the long-term capital gains arisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 appurtenant thereto the income of which is chargeable under the head 'income from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 sold the first flat, it was being used by her mainly for the purpose of her own ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 contention that the flat sold by the assessee was being used by her mainly for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used mainly for the purpose of her own residence ? On both the above grounds we agree with the view taken by the Tribunal and our answer to the question referred to us is in favour of the department and as follows: " On the facts and in the circumstances of the case, the assessee was not entitled to exemption under section 54 of the Income-tax Act, 1961, on the long-term capital gains arisin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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