PAWAN KUMAR GARG Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal filed under Section 260A of the Income Tax Act,1961 (for brevity 'the Act') challenges order dated 24.5.2006 passed by the Income Tax Appellate Tribunal, Chandigarh Bench arising out of ITA No. 262/Chandi/2004 for the assessment year 1998 -99 ( Annexure A/1). The assessee has also filed an application under Section 5 of the Limitation Act,1963 read with Section 260A of the Act for condonation of 294 days delay in filing the appeal.

(2.) THE appellant has claimed that following substantive questions of law would arise for our determination:

(3.) ON appeal preferred by the assessee the Commissioner of Income Tax (A) reversed the view taken by the Assessing Officer after concluding that the appellant could have utilised the amount of capital gain of Rs.5,11,560/ -declared on 22.4.1997 within a period of three years i.e. on or before 22.4.2000. The CIT(A) found that the period did not expire at the time of filing the return on 11.10.1998. He further held that circular of the Board No. 667 dated 18.10.1993 is to be applied and the cost of the land was required to be treated as an integral part of the residential house. He brushed aside the report of the Executive Engineer, Estate Officer, Punjab Urban Development Authority and the Inspector and concluded that the assessee -appellant had erected two room residential unit which may not be called expensive but nevertheless is covered by the definition of expression 'residence'. Therefore the benefit of Section 54F of the Act was available.