Income-tax Reference No. 156 of 1993. Case: Commissioner of Income Tax Vs Smt. Bharati C. Kothari. High Court of Calcutta (India)
| Case Number | Income-tax Reference No. 156 of 1993 |
| Judges | Y.R. Meena and R.K. Mazumdar, JJ. |
| Issue | Income-Tax Act, 1961 - Section 54; Income-Tax Rules, 1962 - Rule 54 |
| Citation | 2000 (160) CTR 165 (Cal), 2000 (244) ITR 352 (Cal), 2001 (117) Taxman 538 (Cal) |
| Judgement Date | March 06, 2000 |
| Court | High Court of Calcutta (India) |
Judgment:
Y.R. Meena, J.
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On an application under Section 256(1) of the Income Tax Act, 1961, the following question set out at page 2 of the application, has been referred by the Tribunal for our opinion:
"Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in holding that the assessee is entitled to exemption under Section 54(1) since the agreement of purchase was made within one year from the date of sale and since substantial parts of instalments were paid within two years from the date of sale and thereby treating the date of agreement as the date of purchase?"
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The assessee had sold her flat at Rs. 1,40,000 on April 30, 1981. The asses-see thereupon entered into an agreement on April 29, 1982, for purchase of ownership flat from Akash Deep Corporation for a sum of Rs. 1,40,000. As per the agreement, she had to pay Rs. 10,000 on or before the execution of the agreement and the balance amount she has to pay as under:
Date of payment
Amount (Rs.)
22-4-1982
10,000
25-3-1983
10,000
25-4-1983
10,000
4-6-1983
10,000
5-7-1983
10,000
27-7-1983
10,000
14-11-1983
50,000
21-1-1984
20,000
3-3-1984
10,000
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The assessee claimed the benefit of exemption under Section 54(1) of the Income Tax Act, 1961. According to the Assessing Officer, the assessee is entitled to only the benefit to the extent of Rs. 30,000 which she has invested during two years from the date of sale.
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In appeal before the Deputy Commissioner of Income Tax (Appeals), the Deputy Commissioner of Income Tax (Appeals) dismissed the appeal of the assessee.
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In appeal before the Tribunal, the Tribunal has considered the decision of the Andhra Pradesh High Court in the case of CIT v. Mrs. Shahzada Begum [1988]173ITR397(AP), and also considered the decision of the apex court in the case of CIT v. J.H. Gotla and allowed the claim of the assessee. When the assessee has invested the entire amount within three years, she is entitled to exemption under Section 54(1) of the Act.
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The facts are not in dispute that after sale of her flat on April 30, 1981, she entered into an agreement for purchase of an ownership flat on April 29, 1982, and the entire amount of the flat, that is, Rs. 1,40,000 has been paid within three years from the date of sale of her flat.
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In Mrs. Shahzada Begum's case [1988]173ITR397(AP) the Andhra Pradesh High Court has taken the view that the...
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