TMI Blog2015 (10) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Thus the appellant is appealing for relief against the unlawful act of the Assessing Officer (A.O.) by taxing the Short Term Capital Gains on which Securities Transaction tax is already suffered at the Lower Rate of 10% as per Section IIIA of the Income tax Act, 1961 instead of the Normal Rates applicable to Individual as applied by the learned Assessing Officer. 2) On the facts and in the circumstances of the case and in law the learned Assessing Officer is unjust in taxing the Short Term Capital Gains o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 gains at Normal Rates without giving any opportunity to hear the appellant. Thus, the appellant appeals for an opportunity to be heard. 4) The benefit of Lower rate of tax on Short Term Capital Gains on Sale of Equity Shares on which Securities Transaction tax is suffered is provided because the Act does not intend to tax such transaction twice, once as Securities Transaction tax when the sale of Equity Shares are effected on a Recognized Stock Exchange and further as Capital gains while filing the Return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 the return of income but in the application moved u/s 154 of the Act, he pointed out that it was an inadvertent error because in the same return form while enumerating computation of tax liability on total income, assessee had calculated and paid tax on such income at concessional rate. Secondly, assessee also pointed out item no. 2 in schedule S1, of the income tax return form, wherein, short term capital gain chargeable to concessional tax rate u/s 111A of the Act of ₹ 4,20,550/- has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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