9911796707
TMI Blog2007 (3) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... in holding that the assessee is entitled for the capital gains exemption under Section 54 F? 2. The appeal relates to the assessment year 1992-93. 3. The assessee herein is an individual. The assessment was originally completed under Section 143(1)(a). While making a prima facie adjustment in computing the claim on capital gains, the Income Tax authority rejected the claim on exemption under Section 54F of the IT Act on the ground that the assessee had a residential house at the time of sale of the vacant side and that the sale proceeds were utilised for the extension of the existing building. The assessee preferred an application under Section 154 of the Income Tax Act, 1961, contending that the benefit of Section 54F should have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal before this Court, contending that when the assessee had a residential house at the time of sale of a vacant site and that the proceeds were utilised for the extension of the existing property, the benefit claimed under Section 54 F was rightly disallowed in the proceedings under Section 143(1)(a). The Revenue further contended that the Tribunal erred in its view that such a disallowance, which is in accordance with law, could not be a prima facie adjustment under Section 143(1)(a). In the circumstances, the Revenue prayed for restoration of the order of assessment. 6. We do not agree with the submission made by the learned Senior Standing Counsel appearing for the Revenue. It is an admitted proposition of law that the exerc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Officer was of the opinion that the assessee claimed certain benefit to which he was not entitled to, instead of making adjustment under Section 143(1)(a), it is for the Assessing Officer to initiate appropriate proceedings to assess the income in accordance with law. Touching on the jurisdiction of the Officer under Section 143(1)(a), this Court held that "it is a summary act on the basis of undisputed material furnished by the assessee, without factually disputing its correctness." In the light of the abovesaid view that a debatable issue can never be a subject matter for consideration while passing an order under Section 143(1)(a), we reject the Revenue's contention and dismiss the appeal. There will, however, be no order as to cost ..... X X X X Extracts X X X X X X X X Extracts X X X X
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