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2006 (4) TMI 357 - AT - Income TaxDenial of benefit of section 54 - Capital gains - Appellate Tribunal - time-barred by 7 years and 192 days - HELD THAT:- The expression "sufficient cause" within the meaning of section 5 of the Limitation Act as well as similar other provisions, the ambit of exercise of powers thereunder have been subject-matter of consideration before the Hon’ble Supreme Court on various occasions. In the case of State of West Bengal v. Administrator [1971 (12) TMI 106 - SUPREME COURT], Howrah Municipality [1971 (12) TMI 106 - SUPREME COURT] the Hon’ble Supreme Court while considering the scope of expression "sufficient cause" for condonation of delay has held that the said expression should receive a liberal construction so as to advance the substantial justice when no negligence or inaction or want of bona fide is imputable to party. From the documents placed before us we are satisfied that assessee had made investment in the purchase of new flat i.e., in May, 1993 itself which indicate that such investment has been made within one year of the sale of old flat. The documents i.e., the order of State Redressal Commissioner coupled with the sale agreement duly reflect that new flat was purchased by the assessee well within the time. Such sale agreement has been executed in pursuance of the State Redressal Commissioner’s order, therefore, its authenticity cannot be doubted. The dispute relates to assessment year 1993-94 assessee has already undertaken two rounds of litigation up to the Tribunal as well as in different forums. Therefore, taking into consideration all these circumstances we do not see any good reason to set aside this issue to the file of Assessing Officer. We allow this ground of appeal of assessee and direct the Assessing Officer to grant relief u/s 54 of the Act to the assessee. However, we remit the computation of relief admissible u/s 54 to the Assessing Officer. He shall compute the relief taking into consideration the payments made by the assessee within the time limit and he shall carry out such exercise after affording due opportunity of hearing to the assessee. In the result, the appeal of the assessee is allowed.
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