2010 (10) TMI 96 - HC - Income Tax

Sale of shares - Long term capital gain - filed revised return surrendering the aforesaid claim of long term capital gain on shares to be assessed at the normal rate of tax with the prayer that no penalty proceeding be taken under Section 271 (1) (c) of the Income Tax Act 1961 (the Act) - Tribunal set aside the order of the Commissioner of Income Tax. There is no illegality in the same. The appeal has no merit and is dismissed

Summary

The appeal relates to the assessment year 2002-03. The respondent sold shares for Rs.5,89,264/- from long term capital gain. She filed a revised return surrendering the claim of long term capital gain. The revised return was accepted, and she was assessed at the normal rate of tax. Penalty proceedings were dropped. The Commissioner of Income Tax set aside the order under Section 263 of the Act. The respondent appealed before the Tribunal, which allowed the appeal. The High Court dismissed the appeal, stating there is no illegality in setting aside the Commissioner's order.