TMI Blog2023 (2) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... f taxable long term capital gains - HELD THAT:- The order having been passed on the application for rectification under section 154 assuming that the same was erroneous, as alleged, cannot simply be brushed aside. It would have been open to the authorities to take remedial measures to question the legality and correctness of the order. In so far as the claim under the Act of 2021 is concerned, a clarification issued by the Central Board of Direct Taxes clearly envisages that if there is a reduction or increase in the income and tax liability of the assessee as a result of rectification, the disputed tax in such cases would be calculated after giving effect to the rectification order passed, if any. Reference in this regard can be made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2016. An amount of Rs.98,75,513/- was added to the income of the petitioner. 3. An appeal was preferred by the petitioner before the Commissioner of Income Tax (Appeals). Rectification application also came to be fled by the petitioner before the Assessing Officer seeking rectification of the computation of the tax payable. Rectification application was allowed holding that there was an error in treating the income as taxable business income instead of taxable long term capital gains . A revised demand/computation sheet was accordingly issued to the petitioner and the tax and interest payable consequent to the order under section 143(3) of the Act was reduced to Rs.13,04,230/- instead of the earlier demand of Rs.36,07,220/-. 4. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs under section 143(3), as against the returned income of Rs.46,67,850/- by the petitioner an addition of Rs.98,75,513/- was made determining the total income at Rs.1,63,23,363/- and the same was taxed at the rate of 30% denying the claim of exemption of Long Term Capital Gain (LTCG) under section 10(38) of the Act and taxed the same as unaccounted income. 8. Reliance was placed upon the definition of Disputed Tax under section 2(1)(j)A, which envisages as under : Disputed Tax, in relation to an assessment year or financial year, as the case may be, means the income Tax, including surcharge and cess payable by the appellant under the provisions of Income Tax Act, 1961 (43 of 1961), as computed hereunder : 1. In a case wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of section 115BBE of the Act only. 12. We have heard learned counsel for the parties. 13. Admittedly, post the order of assessment under section 143(3) of the Act, the Assessing Officer passed an order on the application seeking rectification in terms of section 154 of the Act, which reads as under : Order u/s. 154 of the Income Tax Act, 1961 1. In this case the assessee filed its return of income on 29/11/2014 declaring total income of Rs.64,47,850/-. Assessment u/s.143(3) of the Act was completed on 16/12/2018 determining total income at Rs.1,63,23,363/-. During the course of assessment proceedings, an addition amounting to Rs.98,75,513/- was made under the head Long Term Capital Gain . Subsequently, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h reads as under : Question No.25 Answer In a case appeal or arbitration is pending on the specified date, but a rectification is also pending with the AO which is accepted will reduce the total assessed income. Will the calculation of disputed tax be circulated on rectified total assessed income ? The rectification order passed by the AO may have an impact on determination of disputed tax, if there is reduction or increase in the income and tax liability of the assessee as a result of rectification. The disputed tax in such cases would be calculated after giving effect to the rectification order passed, if any. 16. It thus becomes clear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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