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TMI Blog2015 (10) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal, assessee has raised the following Grounds of appeal:- "1) On the facts and in the circumstances of the case and in law the learned Assessing Officer has erred in passing a rectification order u/s.154 of The Income tax Act, 1961 by taxing the Short Term Capital Gains on Sale of Equity Shares on which Securities Transaction Tax is suffered at Normal Rate instead of Special Rate as specified u/s. 111 A of the Act. On the facts and in the circumstances of the case, the Short Term Capital Gains of Rs. 4,20,550/- arising out of Sale of Equity Shares through a recognized Stock Exchange and on which Securities Transaction Tax (SIT) is suffered and thus should be taxed at Special Rate as specified under the Section IIIA of the Income tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer is unjustified in laying emphasis on the error that has been committed in filling the Return of Income while ignoring the correct tax treatment of such Income claimed by the appellant in the same Return of Income in Form ITR-4 filed by the appellant with the department. A copy of the Return of Income in Form ITR-4 as filed with the department is enclosed herewith for your ready reference. 3) On the facts and in the circumstances of the case and in law the learned Assessing Officer is unjustified in not giving appellant an opportunity to substantiate and/or prove that the Securities Transaction tax was suffered on the Sale of Short Term Capital Asset - Equity Shares. The Assessing Officer was determined to tax the Short Term Capital gai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an application u/s 154 of the Act, seeking rectification of the aforesaid mistake but the same was rejected by the Assessing Officer vide order dated 11.08.2010. The plea of assessee did not find favour with the CIT(A) also and accordingly, assessee is in further appeal before us. 5. A perusal of the orders of authorities below reveal that the impugned income earned by the assessee has been subject to the normal rate of tax instead of concessional rate of tax provided u/s 111A of the Act on the ground that the return of income in Form No. ITR-4, furnished by the assessee did not contain such a claim in item no. 4) a) i) of the Part-B, in the computation of total income. The assessee does not dispute that such a mistake has occurred in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Form ITR-4, in part-B computation of total income, though the same has been correctly depicted in the annexures and other schedules annexed to the return of income Form ITR -4. The plea of the Revenue is that the information furnished in the schedules and annexures to the return cannot override the declaration made in the return form. 7. In our considered opinion, the 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 disp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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