20 April 2009
Section 54 of the Act provides that in case of capital gain arising from the transfer of a long-term capital asset being a residential house would not be chargeable to tax in case the assessee acquires a residential house within a period of one year before or two years after the date on which the sale took place.
The above section, though, provides for the acquisition for a residential house, the Income-tax Appellate Tribunal in a number of cases has held that this is no bar on acquiring more than one residential house out of the proceeds of one residential house. The following decisions of the Tribunal may be referred to in this regard:
n D. Anand Basappu v. ITO [2004] 91 ITD 53 (Bang.) n ITO v. P.C. Ramakrishna [2007]108ITD 251(Chennai) n Prem Prakash Bhutani v. CIT [2007] 110 TTJ (Delhi) 440
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