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TMI Blog2020 (4) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... preferred a Misc. Application being M.A. N9o.156/Kol/20-19 against the order of the Tribunal dated 31.12.2018 wherein revenue raised a ground that the Tribunal while adjudicating the appeal considered both ground nos. 3 and 4 together without adjudicating ground no.4 specifically. In the light of the same, the Tribunal vide order dated 22.11.2019 was pleased to recall the decision in respect of ground nos. 3 and 4 for fresh adjudication. Hence, this appeal is again before us for the limited purpose of adjudication of ground nos. 3 and 4. 3. At the outset itself, the Ld. Counsel for the assessee Mr. Tibrewal contended that ground no. 3 had been adjudicated by the Tribunal vide order dated 31.12.2018 and Tribunal has not adjudicated ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng officer to work out the long term capital loss and short term capital loss. We are of the view that there is no infirmity in the order of ld CIT(A) in directing the AO to compute the long term/short term capital loss. That being so, we decline to interfere in the order passed by the ld. CIT(A), his order on this issue is hereby upheld and grounds of appeal raised by the Revenue is dismissed." So, we reiterate the order of the Tribunal and dismiss ground no.3 of the revenue's appeal. 4. Coming to ground no. 4 raised by the revenue which is as under: "That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that the profit from sale of shares of TCG Urban Infra Holding Limited (TUIHL) was Capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Capital Gain and furthermore, indexation on foreign holdings which is not listed in stock exchange is not allowable. The AO also noted that the Ld. AR of the assessee has not produced any evidence of purchase and sale of these investments and such dividend income received from foreign companies are also not exempt to tax. The AO noted that no STT was paid on the aforesaid investments and so the benefit of special rate of tax, indexation deduction is also not allowable on foreign investments on which the Indian Income Tax Act and Rules do not apply, therefore, the AO concluded that income received on foreign transactions amounting to Rs. 7,05,25,524/- needs to be taxed under the head "Income from other sources" and accordingly assessed. Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erse remark against the documents of incorporation of M/s. TUIHL before the ROC, Kolkata from year 1981 this fact is not disputed and therefore, the question of treating M/s. TUIHL as a foreign company does not arise and the Ld. CIT(A) has rightly taken note of the facts and given relief to the assessee and, therefore, he does not want us to interfere with the order of the Ld. CIT(A). 8. We have heard rival submission and perused the material available on record. We note that the AO had proceeded to make the addition on the basis that the assessee had sold the shares of M/s. TUIHL which was a foreign company. However, during the appellate proceedings the assessee was able to produce documents to substantiate that it (M/s. TUIHL) was indeed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be treated as long term capital gain and in view of the provision of sec. 48 of the Act he was of the opinion that the assessee had correctly deducted the index cost of acquisition from the sale proceeds of the shares. The Ld. CIT(A) has noted that the assessee was holding the shares of M/s. TUIHL as investment and, therefore, the gain on its sale is to be taxed under the head long term capital gain. It is also noted that in the instant case assessee has not claimed special tax rate or exemption of long term capital gains. In the light of the above facts and law as discussed by the Ld. CIT(A) and in the light of the remand report of the AO, we do not find any infirmity in the order of the Ld. CIT(A) and, therefore, we uphold the same. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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