TMI Blog1995 (6) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... he light of the material placed before us and precedents relied upon. This was alternative submission before the Revenue authorities. It was without prejudice to the claim of assessee that the sale of shares is part of family arrangement. It was held by the Revenue authority that there is no sufficient nexus between the sale of shares at a profit and the payment to son in terms of some family arrangement. It was therefore alternatively argued that the assessee is entitled to exemption under s. 54F if there be any capital gain arising out of the transfer of shares. The amount realised from the sale of shares was invested in the purchase of residential house, being 1/5th share in the flat belonging to her son Dr. Bipin Alreja. On the date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to s. 54F(1) whether the benefit of section could be granted to the assessee. As clarified in the proviso the benefit of s. 54F shall not be granted— (i) Where the assessee owns on the date of transfer of the original asset or (ii) purchases, within the period of one year after such date, (iii) constructs, within the period of 3 years of such date. any residential house, the income from which is chargeable under the head "income from house property" other than the new asset. 7. Reliance was placed on the decision of the apex Court rendered in the case of CIT vs. Aravinda Reddy (1979) 12 CTR (SC) 423 : (1979) 120 ITR 46 (SC). In this case, 4 brothers, members of an HUF, partitioned jointly family property, leaving undivided a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration from the legal meaning of that word in s. 54(1). If you sell your house and make a profit, pay Caesar what is due to him. But if you buy or build another subject to the conditions of s. 54(1) you are exempt. The purpose is plain; the symmetry is simple, the language is plain. Why mutilate the meaning by lexical legalism. We see no stress in the section on "cash and carry". The point pressed must, therefore, be negatived. We have declined to hear Sri S.T. Desai's artillery fire although he was armed cap a pie with Mitakshara lore and law. A point of suffocating scholarship sometimes arrives in Court when one nostalgically remembers the escapist verse: "Where ignorance is bliss, Tis folly to be wise." 8. In the case of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke an example. X constructs a house on a plot owned by him. First year he sells shares and construct ground floor of the house. Next year again he sells the shares and construct first floor. Benefit under s. 54F cannot be denied just because X in the first year owns ground floor of the house. The meaning of the word owns on the date of transfer of original asset is in relation to an identifiable different unit, and not in respect of the same unit. Therefore, in our opinion conditions precedent for availing the benefit of s. 54F did exist in the facts and circumstances of the case. We, therefore, direct the AO to allow the benefit of s. 54F to the assessee. In view of this finding it is not necessary to decide the other issues. We, therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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