- (1.) THIS appeal has been filed by the assessee, seeking to challenge the orders of the authorities below, i.e. the Assessing Authority, appellate order of Commissioner of Income Tax, and further appellate order of I.T.A.T. The appeal was admitted on 4.4.2003 by framing the following substantial question of law: Whether in the facts and circumstances of the case, the Tribunal was right in holding that appellant - assessee was not entitled to exemption for residential house under Section 53 of the I.T. Act.?
(2.) THE necessary facts, devoid of unnecessary details, are, that there existed a plot of land, being Plot No. 20 at Sector -A, Kamla Nehru Nagar, Jodhpur, having a boundary wall and a garage cum room constructed thereon. It was acquired by one Mr. Ajit Mal Bhandari, who bequeathed it to the two brothers, one being the assessee, and the other being Sanjay Surana. After death of testator, the entire plot of land was sold for Rs. 1,90,000/ -, out of the sale proceeds, the assessee received his share being Rs. 95,000/ -. The assessing authority assessed this income to tax, and found the assessee to be not entitled to the deduction claimed, by declining the claim for exemption raised by the assessee under Section 53 of the Income Tax Act, by treating it as a residential house. This was affirmed by all the authorities below. So far the factual aspect of the matter is concerned, viz. the aforesaid plot No. 20 having been bequeathed by Ajit Mal Bhandari to the assessee and his brother Sanjay Surana vide Will dt. 4.4.1991, Shri Ajit Mal Bhandari having expired on 9.5.1991, and the property having been sold on 5.3.92, for a total consideration of Rs. 1,90,000/ -, from out of which the assessee having received his share being Rs. 95,000/ -, and the plot having the boundary wall and a garage cum room constructed thereon, are all not in dispute between the either side.
(3.) IT is in the background of this factual matrix, which is not in dispute, that the question arises, as to whether the authorities below were right in holding the assessee to be not entitled to exemption on the ground of the property being a residential house, under Section 53.;