2016 (7) TMI 95 - AT - Income Tax

LTCG computation - AO enhancing the income under the head Long Term Capital Gain earned during the year in the Intimation U/S 143(1) - Held that - We find that both the Learned AR and Learned DR fairly agreed for ascertaining of real facts by the Learned AO with regard to the disclosure of LTCG by the assessee from the electronically filed return of income. Accordingly, in the facts and circumstances, we deem it fit and appropriate in the interest of justice and fair play to set aside this issue to the file of the Ld. AO to have a revisit on the impugned issue afresh, by verification of the figures of LTCG in the return vis a vis the workings of the assessee and dispose the issue in accordance with law. Needless to mention that, the assessee should be given reasonable opportunity of being heard. - Decided in favour of assessee for statistical purposes.

Summary

Issues:
1. Enhancement of income under the head "Long Term Capital Gain" in the intimation under section 143(1) of the Income Tax Act, 1961.
2. Consequential enhancement of total income in the said intimation under section 143(1) without assigning reasons.
3. Assessment of Long Term Capital Gains without deduction towards indexed cost of acquisition and set off of brought forward loss.

Analysis:
1. The appeal by the assessee challenged the CIT(A)'s confirmation of the Assessing Officer's action in enhancing the income under Long Term Capital Gain without providing reasons. The CIT(A) upheld the intimation under section 143(1) of the Act. The Tribunal set aside the issue to the Assessing Officer for a fresh assessment, emphasizing the need for a revisit to ascertain the real facts regarding the disclosure of Long Term Capital Gain in the return of income. The Tribunal directed the Assessing Officer to verify the figures of Long Term Capital Gain and dispose of the issue in accordance with the law, ensuring the assessee is given a reasonable opportunity to be heard.

2. The assessment for the relevant assessment year was completed without giving a deduction towards the indexed cost of acquisition of shares of SBI and set off of brought forward loss. The Tribunal noted that both the assessee's representative and the Department's representative agreed for a reassessment by the Assessing Officer to determine the actual facts regarding the disclosure of Long Term Capital Gain. The Tribunal deemed it appropriate for the Assessing Officer to revisit the issue and make a fresh assessment, ensuring justice and fair play by giving the assessee a reasonable opportunity to present their case.

3. The Tribunal allowed the appeal of the assessee for statistical purposes, indicating that the matter was being remanded back to the Assessing Officer for a fresh assessment. The Tribunal emphasized the importance of verifying the figures of Long Term Capital Gain disclosed in the return of income and directed the Assessing Officer to dispose of the issue in accordance with the law. The decision was made in the interest of justice and fair play, ensuring that the assessee's rights were upheld during the assessment process.

This comprehensive analysis of the judgment highlights the issues raised by the assessee, the Tribunal's decision to remand the matter back to the Assessing Officer for a fresh assessment, and the importance of ensuring a fair and just determination of the Long Term Capital Gain for the relevant assessment year.