COMMISSIONER OF INCOME-TAX, ANDHRA PRADESH vs T.N. ARVINDA REDDY

The Supreme Court upheld the Andhra Pradesh High Court's ruling that release deeds executed by coparceners in favor of one member, resulting in the transfer of joint ownership to separate ownership, constitute a purchase under Section 54(1) of the Income Tax Act, 1961. The Court clarified that the term 'purchase' includes acquisition for consideration, whether in money or adjusted value, thus affirming the legal interpretation of 'purchase' in tax law. The outcome confirmed that the respondent was not liable for capital gains tax due to this interpretation.