TMI Blog1986 (6) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee ? (2) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that the assessee is entitled to exemption under section 54 of the Income-tax Act, 1961 ? " The assessee was the owner of a building at 15th Cross, Malleswaram. The building consisted of ground floor and first floor. The ground floor was occupied by the assessee and the first floor was let out. The assessee sold the building on February 9, 1977, for Rs. 1,20,000. He worked out the capital gains at Rs. 83,968 which he claimed as exempt from tax under section 54 of the Income-tax Act. Some time earlier to March, 1976, he has commenced construction of a new house. It was evidently prior to the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ildings 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, 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, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e next conclusion reached by the Tribunal. The date of the sale of the old building was February 9, 1977. The completion of the construction of the new building was in March, 1977, although the commencement of the construction started in 1976. It is immaterial, as the Tribunal, in our opinion, has rightly observed, about the date of commencement of the construction of the new building. Since the assessee has constructed the building within two years from the date of sale of the old building, he was entitled to relief under section 54 of the Act. Both the conclusions reached by the Tribunal are on an appraisal of the evidence on record and they are not shown to be unreasonable or perverse. We, therefore, answer the question in the affi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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