Facts of case:
a) Assessee sold his residential property and invested sale proceeds in another residential property. He claimed exemption under section 54 in respect of capital gains arising on sale of property.
b) Later on, he had settled the new property to his daughter out of love and affection.
c) He submitted that the settlement of property in favour of the daughter was a gift falling under section 47(iii) and was not taxable.
d) Assessing Officer held that settlement did not cover under section 54(i) or 54(ii) and accordingly denied exemption.
