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2015 (10) TMI 16 - AT - Income TaxShort term capital gain - sale of equity shares through a recognized stock exchange on which Securities Transaction Tax (STT) - whether has been wrongly taxed at normal rate, whereas, it should be taxed at special rate of 10% as specified u/s 111A? - Held that:- Approach adopted by the income tax authorities in the present situation is quite myopic and deserves to be repelled. The statutory provision of section 111A of the Act providing for a concessional tax rate on short term capital gain arising out of sale of equity shares through a recognized stock exchange on which STT has been paid, is not in dispute. It is also not in dispute that the assessee has successfully proved before the lower authorities that he has earned the income of ₹ 4,20,550/- which deserved to be taxed in terms of section 111A of the Act. In our view, the aforesaid undisputed features does not justify the stand of the Revenue in taxing such income under the normal rate of tax. Furthermore, the non mentioning of such income in one of the columns of the income tax return is to be understood as an inadvertent mistake because in the same form of return of income, at more than one place, assessee has shown such income to be entitled for concessional rate of taxation. In the aforesaid light, in our view, the CIT(A) erred in not allowing the claim of assessee for taxing the short term capital gain as per the special rate specified u/s 111A of the Act. Accordingly, the order of CIT(A) is set aside and the Assessing Officer is directed to re-work the tax liability of the assessee after considering the short term capital gain of ₹ 4,20,550/- to be an income liable to be taxed in terms of section 111A of the Act. - Decided in favour of assessee.
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