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2016 (1) TMI 684 - AT - Income TaxRectification of mistake - Long Term Capital Gain on sales of shares was wrongly offered to tax and that the same was exempted u/s 10(38) as per assessee - as per CIT(A) claim was not supported by a revised return of income - Held that:- The CBDT Circular No.14 of 1955 dated 11.04.1955 has taken a view that the officers of the department must not take advantage of ignorance of the assessee about his rights and it is their duty to assist the tax payer in every reasonable way particularly in the matter of claiming and securing reliefs. In my view therefore the revenue authorities ought not to have rejected the application u/s 154 of the Act on the ground that the assessee has not filed the revised return of income. The CIT(A) has placed reliance on the decision of the Hon’ble supreme Court in the case of Goetz (India) Ltd. (supra) for sustaining the order of the AO u/s 154 of the Act. The Hon’ble Supreme Court in it’s decision rendered in the case of Goetze (India) Ltd vs CIT [2006 (3) TMI 75 - SUPREME Court] has clarified that the appellate authorities under the Act have the power to consider the claim even if the business of the revised return of income. Therefore, the claim of the assessee that Long Term Capital Gain is exempt u/s 10(38) of the Act has to be examined by the AO. It is seen from the order of AO u/s 154 of the Act that the AO wanted details of acquisition and proof of payment of STT. Therefore set aside the order of CIT(A) and remand the question of exemption of Long Term Capital Gain u/s 10(38) of the Act to the AO for fresh consideration. The assessee is directed to file necessary evidences before the AO to substantiate his claim. - Decided in favour of assessee for statistical purposes.
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