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TMI Blog2017 (7) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... itled to the benefit of proviso to section 112(1) of the Act on sale of equity shares of M/s Jagatjit Industries Ltd., a listed company." 3. We have heard the arguments of both the sides and perused the material placed before us. The facts of the case are that during the year under consideration, the assessee has sold the shares of M/s Jagatjit Industries Ltd. (hereinafter referred to as "JIL"). The assessee is admittedly a non-resident. JIL is admittedly a listed company. The Assessing Officer, while computing the capital gain from the sale of shares of JIL, computed the capital gain without allowing the benefit of indexation while considering the cost of acquisition and charged capital gains tax at the rate of 20%. On appeal, learned CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... du undivided family, being a resident,- (i) the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been his total income ; and (ii) the amount of income-tax calculated on such longterm capital gains at the rate of twenty per cent : Provided that where the total income as reduced by such long-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such long-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax and the tax on the balance of such longterm capital gains shall be computed at the rate of twent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tax payable in respect of any income arising from the transfer of a long-term capital asset, being listed securities or unit or zero coupon bond, exceeds ten per cent of the amount of capital gains before giving effect to the provisions of the second proviso to section 48, then, such excess shall be ignored for the purpose of computing the tax payable by the assessee." 5. From the proviso, it is evident that where the tax payable in respect of the transfer of a long term capital asset in the case of a listed company exceeds 10% of the amount of the capital gain before giving effect to the provisions of second proviso to Section 48, then such excess shall be ignored for the purpose of computing the tax payable by the assessee. In the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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