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2012 (4) TMI 394 - ITAT MUMBAIDisallowance of long term capital loss, arising on conversion of US 64 units into 6.75% tax free bonds, after indexation of cost, as claimed by the Appellant - Exemption u/s 10(33) - held that:- The provisions are not meant to enable an Assessee to claim loss by indexation for set off against other capital gain chargeable to tax. The intention of the legislature was only to restore status quo ante and not to confer any benefit of carry forward of capital loss for set off against capital gain chargeable to tax in the subsequent Assessment years. The economic reasons for insertion of Sec. 10(33) of the Act clearly shows that the source viz., transfer of capital asset being units of US 64 itself that has been excluded by the will of the Legislature and not the capital gain alone. - Decided against the assessee. Regarding deduction u/s 80HHC - The assessee had claimed a sum of ₹ 1,14,844/- as deduction u/s. 80HHC of the Act, however the AO allowed deduction of only ₹ 1,00,600/- because this was the sum specified in the report in Form 10CCAC which has to be filed by the Assessee in terms of Sec. 80HHC(4) - It is not in dispute that in Form No. 10CCAC while calculating the deduction u/s. 80HHC of the Act Excise Duty had been included as part of the total turnover - the tax liability has to be determined in accordance with law and the mistake made in the certificate of the Chartered Accountant in Form 10CCAC should not have been relied upon by the revenue for reducing a legitimate claim for deduction u/s. 80HHC of the Act made by the Assessee - Held that: the claim made by the assessee for deduction u/s. 80HHC at a sum of ₹ 1,14,844/- has to be accepted - Decided in favor of the assessee
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