COMMISSIONER OF INCOME-TAX, AHMEDABAD vs TIKYOMAL JASANMAL — 1976 PTD 292

Citation: 1976 PTD 292

Court: Gujarat High Court

Year: 1970

Decision Date: 1970-10-14

Parties: COMMISSIONER OF INCOME-TAX, AHMEDABAD vs TIKYOMAL JASANMAL

Headnotes

Case cited as 1976 PTD 292

Judgment Text

Court Name: Gujarat High Court Judge(s): P. N. Bhagwati, B. J. Divan Title: COMMISSIONER OF INCOME-TAX, AHMEDABAD vs TIKYOMAL JASANMAL Case No.: Income-tax Reference No, 1 of 1970 I. T. A. No, 1682 of 1 Date of Judgment:1970-10-14 Reported As: 1976 PTD 292 Result: Order accordingly JUDGMENT JUDGMENT ' P. N. BHAGWATI, C. J.-The question which arises for determination in this reference is a narrow one and it relates to the interpretation of section 54 of the Income-tax Act, 1961. The facts giving rise to the reference are few and may be briefly stated as follows. The assessee is a refugee from Pakistan. He purchased a house property at an auction held by the rehabilitation Department. The price was Rs, 6,825 and it was paid by the assessee by way of adjustment of his claim for compensation in respect of properties left in Pakistan. This house property was used by the assessee, mainly, for the prupose of his own residence right up to 26th June, 1962, when he sold it for the price of Rs, 40,000. The sale of the house property resulted in a capital gain of Rs, 33,175. The assessee by utilising the sale proceeds purchased a piece of land on 30th July, 1962, and started constructing a building on it in August, 1962. The construction of the ground floor of the building was completed by March, 1963, at a cost of Rs, 34,000. The total area of the ground floor was 1,389 sq. Ft. And as soon as it was about to be ready, the assessee occupied the whole of it in February, 1963. Out of…

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