TMI Blog1993 (8) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... residential property belonging to it ?" On a partial partition effected in 1974, of certain properties belonging to the bigger Hindu undivided family of Gunvantlal Jivanlal Shah, the assessees which are small Hindu undivided families and Jasudben got a house property. They sold away the said property for Rs. 13,50,000 by a sale deed registered on December 4, 1980. Out of the sale proceeds, the two assessees and also Jasudben invested Rs. 3 lakhs each by purchasing house properties for residence. Before the Income-tax Officer, both the assessees claimed that capital gains which arose out of sale of the self-occupied property was exempt under section 54 of the Act. The Income-tax Officer negatived their claim on the ground that section 54 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad as under: "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 house property', which in the two years immediately preceding the date on which the transfer took place, was being used by the assessee or a parent of his mainly for the purposes of his own or the parent's own residence (hereafter in this section referred to as 'the original asset'), and the assessee has within a period of one year before or after that date purchased or has within a period of two years after that date constructed a house property for the purposes of his own residence, then ...." A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at it is a place where members of a Hindu undivided family reside together. It is not possible to accept this contention for the reason that a Hindu undivided family under the Income-tax Act is a separate entity and has its own existence apart from its members. Therefore, for the purpose of section 54, we cannot equate a Hindu undivided family with the members of the Hindu undivided family. The words "mainly for the purposes of his own", in our opinion, clearly suggest that an individual was within the contemplation of the Legislature. We respectfully agree with the Madhya Pradesh and Karnataka High Courts that the words "his own" and "parent of his" indicate that section 54 was intended to be applied to individuals only and not to Hindu un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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