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2022 (12) TMI 290 - ITAT CHANDIGARHRectification of mistake u/s 154 - capital gain computation - allowing the cost of acquisition while computing the capital gains - not reducing a sum from working of the profits of business or profession as the said sum represented sale proceeds of immovable property which had been credited to the Profit and Loss Account and while filing the return, the same had been duly considered under the head income from capital gains - HELD THAT:- As in the intimation u/s 143(1), there is an acknowledgment by CPC that the assessee has carried out said adjustment to the profit/loss account to the tune of Rs 19,90,000/-, however, while processing the return of income, adjustment has been reflected by CPC to an extent of Rs 5,79,703/- which has resulted in differential of Rs 14,10,297/- which has been retained as part of the profit/loss account and consequent net adjustment of Rs 14,10,297/-. At the same time,there is an acknowledgement by CPC that the assessee has offered net long term capital gains - therefore find that it is clearly a case where the sale consideration as credited in the profit/loss account has been reduced while computing the income under the head “Profit/gains of business/profession” and income under the head “Capital gains” has been computed separately taking into consideration the sale consideration and cost of acquisition offering net capital gains. CPC has however processed the return of income holding that the separate treatment towards capital gains is to the tune of Rs 579,703/- rather than of Rs 19,90,000/- effectively ignoring the cost of acquisition of Rs 14,10,297/- and thus making the adjustment to the tune of Rs 14,10,297/-.We find that the same is clearly a mistake emerging from the record as no two views are possible for allowing the cost of acquisition while computing the capital gains and that too, while processing the return of income in absence of any material to the contrary available on record. No useful purpose would be solved in remanding the matter and the adjustment so made by the CPC is hereby directed to be deleted. Appeal of assessee allowed.
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