TMI Blog1992 (2) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 1987-88, the assessee sold a vacant site at Puliyur, Kodambakkam, Madras. He then utilised the consideration received for constructing a first floor in a property at No. 2, Raghava Reddy Colony, Madras-95 belonging to him. The ground floor of that property has been let out to a Post Office. He claimed exemption on the ground that the sale proceeds had been re-invested in the constr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the construction of the residential unit, he was entitled to the exemption. On the other hand, it was pointed out on behalf of the Revenue that under section 54F, the assessee was entitled to exemption only if he did not own another residential property and since the assessee actually owned a residential property, he was not eligible for the exemption. 3. I have considered the submissions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is view of the proviso for it will require reading into it a qualification for the residential house as one available for residence. Again, if such a view is taken, it would be easy for anyone to let out a residential house at the crucial time and escape this proviso. As can be seen from the Circular No. 346, dated 30-6-1982 of the C. B. D. T. explaining this provision, the exemption was granted o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on where in view of the high complexity of the tax laws, lack of tax education has led the assessee to believe that he was entitled to the exemption. Unfortunately while the Indian Tax system has copied the American pattern of voluntary tax compliance at the peril of stiff penalties, it has not followed the American practice of providing advance rulings and assistance to tax-payers to avoid such p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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