2007 (3) TMI 161

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....he circumstances of the case, the Tribunal was right in dismissing the appeal without going to the merits of the case? (ii) Whether on the facts and in the circumstances of the case the Tribunal was right 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....

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....his order before the Commissioner of Income Tax (Appeals).  The assessee contended that the disallowance of the claim under Section 54 F could not be made under the prima facie adjustment under Section 143(1)(a), since the question was a debatable one.  Taking the view that a disputed or a debatable issue could not be the basis for prima facie adjustment under Section 143(1)(a), the appe....

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....peals). 5. Aggrieved of this order of the Tribunal, the Revenue has preferred this 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....

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....sions under Section 143 (1)(a). Referring to the Section, this Court held (page 401) : "A perusal of the above, clearly indicates that in making the adjustment of total income of the assessee, the Assessing Officer is entitled to make the adjustment of the income or loss declared in the return.  The adjustments permissible have been enumerated in the above clauses (i), (ii) and (iii) of the ....