2021 (6) TMI 534 - AT - Income Tax

Capital gain computation - application of the provisions of section 50C - difference between actual sale consideration vis- -vis as determined u/s. 50C - HELD THAT - As noticed at the outset that the same involves difference between its actual sale consideration vis- -vis that determined U/s. 50C of the Act to be less than 5% and therefore, deserves to be condoned as per third proviso to sub-section (1) thereof. The Revenue s only argument at this stage is that the said proviso was inserted by the Finance Act 2018 w.e.f, 1/4/2019 and therefore, it is not appliable with retrospective effect in A.Y. 2012-13 before us. We find no merit in the instant argument as per Maria Fernandes Cheryl 2021 (1) TMI 620 - ITAT MUMBAI has already declined the Revenue s identical argument thereby treating the foregoing statutory provisions as a curative one. The impugned former addition stands deleted. MAT computation - section 115JB book profits issue vis- -vis brought forward book loss figure difference - HELD THAT - Both the Learned Representatives are ad idem during the course of hearing the instant latter issue required afresh factual verification.We, therefore, direct the assessee to appear before the Assessing Officer on or before 30/09/2021 with all relevant supportive details for the necessary consequently verification

Summary

Issues:
1. Delay in filing the appeal before the Tribunal.
2. Challenge to capital gains addition under section 50C of the IT Act.
3. Dispute regarding computation of book profit under section 115JB.

Issue 1: Delay in filing the appeal before the Tribunal:
The assessee filed an affidavit seeking condonation of a 29-day delay in filing the appeal, attributing the delay to an employee's sudden resignation who failed to inform the higher officials about receiving the CIT (A)'s order. The Tribunal, while acknowledging the unsatisfactory reasons for the delay, condoned it in the interest of justice to proceed with adjudicating the appeal on merits.

Issue 2: Challenge to capital gains addition under section 50C of the IT Act:
The primary grievance was against the correctness of the capital gains addition of ?11,40,000, which stemmed from a discrepancy between the actual sale consideration and the value determined under section 50C of the Act. The Tribunal noted that the difference was less than 5% and thus deserved condonation under the third proviso to the subsection. The Revenue's argument that the proviso was not applicable for the assessment year 2012-13 was rejected, citing a previous case that treated the statutory provisions as curative, leading to the deletion of the addition.

Issue 3: Dispute regarding computation of book profit under section 115JB:
Regarding the difference in brought forward book loss figures of ?2,93,631 and ?5,66,506 for the assessment years 2010-11 and 2011-12, both parties agreed during the hearing that a fresh factual verification was necessary. The Tribunal directed the assessee to provide relevant details to the Assessing Officer for verification by a specified date, allowing this issue for statistical purposes.

Conclusion:
The Tribunal partly allowed the assessee's appeal, deleting the capital gains addition and directing further verification for the book profit computation issue. The decision was pronounced on 11th June 2021.

This summary provides a detailed analysis of the issues involved in the legal judgment, outlining the Tribunal's decisions and directions for each matter raised by the assessee.