2015 (11) TMI 1612 - HC - Income Tax

Capital gains tax under Section 45 - sale of assets disallowed on the basis of projected figures and not on the basis of actual figures - Held that - When the proposal was submitted by the petitioner to the respondents in 2008, the same was based on projections for the subsequent years. The order was ultimately passed in 2012 when the actuals were available. The actuals had been called for by the respondents and had been supplied by the petitioner. Yet, only the projections were taken into account and the actuals were ignored. The grievance of the petitioner is that the relief relating to capital gains tax ought to have been construed on the basis of actuals and not projections. The learned counsel for the respondents submits that these proposals are always considered on the basis of projections and if there is any difference between the projections and the actuals to the detriment of the proposer, the same would have been absorbed by the latter. The learned counsel for the respondents shall produce some materials/documents to substantiate this plea of his.

Summary

The writ petition challenges the disallowance of relief for capital gains tax based on projected figures instead of actual figures. The petitioner argues that the relief should be based on actuals. The respondents claim that proposals are typically considered based on projections. The court has asked for materials to support the respondents' position. Case renotified for 15.02.2016.