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2016 (6) TMI 941 - AT - Income TaxShort Term Capital Gains (STCG) on sale of equity shares on which STT was paid - amount taxed twice as the assessee has wrongly showed the income from business by wrongly including the STCG in the profit and loss account and also showing it under the head capital gains (others) instead of under the head short term capital gain u/s 111A - Held that:- We find that the assessee has income from business of ₹ 2,93,474/- and the income from STCG from sale of equity shares which are covered under the provisions of section 111A amounting to ₹ 22,61,528/-. However, at the time of filing the return, the amount of capital gains of ₹ 22,61,528/- was wrongly included in the business income and thus the business income was showed at ₹ 25,55,002/- instead of ₹ 2,93,474/- thereby wrongly returned the income from STCG under the head income from the business and thus business income was overstated by ₹ 22,61,528/-. Secondly, we also find that short tax gain on sale of shares on which STT was paid which was liable for tax at the rate of 10% was wrongly shown under the head STCG (others), thereby offering the tax at the rate of 30%. Since the assessee has wrongly returned the income under the wrong heads and also at wrong rate of tax it is an apparent mistake on the face of record which should have been rectified by the authorities below upon being pointed out by the assessee. However, the submissions of the assessee did not find favour with the Income Tax Authorities and hence the matter is in appeal before us. It is a trite law that any income cannot be taxed twice and this amounts to double taxation of the same income which is not permissible under the Income Tax Act. We, therefore finding merits in the submissions of the ld.AR, set aside the order of ld.CIT(A) and direct the AO to assess the income from business at ₹ 2,93,474/- and also the income from STCG on sale of shares of ₹ 22,61,528/- under the head STCG under section 111A. We direct the AO to assess the STT at the rate of 10% as the STT was paid on the sale of shares. - Decided in favour of assessee
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