2019 (8) TMI 106

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....rs 1996-97. 2.The above Tax Case Appeal has been filed raising the following substantial questions of law:- "(i) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the Assessing Officer had jurisdiction to rectify u/s.154, the Assessment order allowing exemption u/s.54F of Income Tax Act, 1961? (ii) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the Assessing Officer had jurisdiction to rectify an order, where debatable issue and issues where two views are possible can be rectified u/s. 14 of Income Tax Act, 1961? (iii) Whether on the facts and in the circumst....

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.... of vacant land is entitled to exemption u/s.54F of Income Tax Act, 1961 on the purchase of a house property exclusively in his name?" 3. We have heard Mr.M.P.Senthil Kumar, learned counsel for the appellant and Mrs.K.G.Usha Rani, learned Standing Counsel for the respondent. 4. The assessment for the year under consideration (1995-96) was completed by the Assessing Officer under Section 143(3) by order dated 29.01.1998. The Assessing Office while doing so took note of the the return of income filed by the assessee and the revised return dated 31.03.1997. In the revised return, the assessee has mentioned a total sale consideration for Selbourn Home as Rs. 40 lakhs instead of Rs. 35 lakhs in the original return of which the assessee&#39....

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....old to two different purchasers and he also submitted that the capital gain arising as per the transactions are exempt under Section 54 and the claim under Section 54F for the property namely the land measuring 1.83 acres is a mistake. In the statement filed along with the return this submission made by the assessee was not accepted by the assessing Officer and accordingly, the order was passed on 27.06.2000 rectifying the assessment. 7. The assessee preferred appeal before the Appellate Authority who proceeded to consider the matter on merits, though the assessee took a stand that there are debatable issues, power under section 154 of the Act cannot be invoked. The assessee carried the matter by way of appeal to the Tribunal wherein a s....

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.... of the Act. It was held to be unjustified as there was no mistake apparent from the record in allowing the deduction. The Revenue preferred appeal against the said appeal before the Hon'ble Supreme Court. 10. The Hon'ble Supreme Court in Commissioner of Income Tax Vs. South Indian Bank Ltd. reported in [(2001) 249 ITR 304 (SC)] considered the case where the assessee, who was a scheduled bank during the assessment year under question deducted interest paid for broken period and this was originally allowed by the Assessing Officer. Later the Assessing Officer invoking the provisions of Section 154 of the Act cancelled such allowance for the reason that the income by way of interest from purchase and sale of securities should be co....