2007 (3) TMI 161

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....ppeal 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 been considered and the question which is an arguable issue, ought not to have been a matter for considerat....

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....idential 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 exercise of power under Section 143(1)(a) is limited not....