2025 (3) TMI 404

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..... tax on capital gain @ 20% instead of 10%. 3. The necessary facts are that the assessee is an individual and in the year under consideration earned a long-term capital gain (LTCG) of Rs. 1,95,850/- on redemption of Market Linked Debenture. The assessee on the impugned LTCG paid tax @ 10%. 4. The CPC in the intimation under section 143(1) of the Act levied the tax on impugned LTCG @ 20% and raised demand of additional tax liability. The assessee against the intimation order filed rectification application u/s 154 of the Act which was rejected by the CPC. 5. The aggrieved assessee preferred an appeal before the learned CIT(A)/NFAC against the intimation under section 143(1) of the Act. 6. The assessee before the learned CIT(A)/NFAC conten .....

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..... of the Act is available where LTCG is arising from the transfer of Shares & Unit of Equity Oriented Funds and not on the LTCG arising from transfer of debentures. 10. Being aggrieved by the order of the learned CIT(A)/NFAC, the assessee is in appeal before the Tribunal. 11. The assessee before me has filed the written submission having 16 pages, reiterating the submissions made before the lower authorities. 12. On the other hand, the learned DR before me vehemently supported the order of the authorities below. 13. I have heard the learned DR and gone through the written submissions filed by the assessee and also perused the materials available on record. The primary question before the me is whether the long-term capital gain (LTCG) ari .....

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..... learned CIT(A) had correctly interpreted the law while dismissing the assessee's appeal. I, therefore, uphold the view of the learned CIT(A). Since debentures are explicitly excluded from the concessional tax treatment under section 112A of the Act, the correct rate of tax applicable on the LTCG from the redemption of Market Linked Debentures is 20% under section 112 of the Act. In light of the above observations, I conclude that the AO/CPC had rightly applied the tax rate of 20% on the impugned LTCG. The appeal filed by the assessee, therefore, lacks merit and is accordingly hereby dismissed. 14. In the result, the appeal filed by the assessee is dismissed. Order pronounced in court on 5th day of March, 2025
Case laws, Decisions, Jud .....

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