01 December 2015
A House property was sold on September 2015. Assessee had booked another flat in January 2014 in the under constructed premises, Construction of which completed and possession was received in December 2014. Can exemption be claimed under section 54 in respect of property whose possession was received in December 2014 against property sold in September 2015.
02 December 2015
B.B. Sarkar v. CIT [1981] 132 ITR 150 (Cal.): Exemption is allowable in full even if house is partly purchased and partly constructed - The main purpose of the statute is to give relief for the acquisition of a new residential house. In that context, it does not really matter whether the new residential house is partly constructed or partly purchased.
02 December 2015
CIT v. Chandanben Maganlal [2000] 245 ITR 182 (Guj.): Exemption is allowable even if a share in new property is purchased - When the Act enables an assessee to get exemption from payment of tax in respect of purchase or construction of a residential house, purchase or construction of a portion of the house should also enable the assessee to claim the exemption. It is possible that a person may not be in a position to purchase the whole residential house at a time and in the circumstances an assessee might purchase a portion of the house or some interest in the house. Thus, where the assessee sold a house and from the sale proceeds purchased 15 per cent undivided share in a house, property from her husband and her son, and she was earlier residing in that house exemption under section 54 can be allowed.
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