Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act 1961: s. 54 - Long term capital gain |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income Tax Act, 1961: s. 54 - Long term capital gain - Assessee-appellant entered into an agreement to sell his C residential house on 27. 12. 2002 and on 30. 04. 2003 purchased another house but could not complete sale transaction of his residential house due to a suit filed against him restraining him from dealing with the sale of said house - When the suit was dismissed and stay was vacated, he D executed sale deed and got it registered on 24. 09. 2004 - Entitlement of appellant to avail benefit of s. 54 - Held: Due to interim order, appellant was restrained from dealing with the sale of his residential house - In the circumstance, for a justifiable reasons which was not within the control of E appellant, he could not execute the sale deed and sale deed could be registered only on 24.9.2004 - In view of definition of term 'transfer' uls.2(47) of the Act, some right in respect of capital asset had been transfe"ed in favour of vendee and some right which appellant had in respect·of the capital asset F had been extinguished because after execution of agreement to sell it was not open to appellant to sell property to someone else - s. 54 gives relief to a person who has transferred his residential house and is purchasing another house either before one year of transfer or even two years after the transfer G - The intention of legislature is to give relief in the matter of payment of tax on long term capital. gain - Sale deed could not be executed as the appellant could not have violated the order of the court - Therefore, in view of peculiar facts of the case, appellant is entitled to benefit u/s. 54 of the Act.Interpretation of statutes: Taxing statutes - Harmonious construction - Held: While considering a claim for exemption ; from tax, a purposive interpretation of the provisions of the · Income Tax Act should be given - Harmonious construction of provisions which subserve the object and purpose should. also be made while construing any of the provisions of the Act - Income Tax Act, 1961. Words and phrases: Transfer - Meaning of, in the context C of s.2(47) of the Income Tax Act, 1961. |
Judge | Hon'ble Mr. Justice Anil R. Dave |
Neutral Citation | 2014 INSC 450 |
Petitioner | Sh. Sanjeev Lal Etc.etc. |
Respondent | Commissioner Of Income Tax, Chandigarh & Anr. |
SCR | [2014] 8 S.C.R. 795 |
Judgement Date | 2014-07-01 |
Case Number | 5899-5900 |
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