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TMI Blog2005 (11) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... come on 29th June, 2005 declaring total income of Rs. 2,05,139. This included short-term capital gains of Rs. 94.78. Certain working sheets were filed along with the return, which showed that the assessee had earned long-term capital gains of Rs. 18,84,464. The assessee had also earned his share of goodwill amounting to Rs. 14,67,051. These incomes, aggregating to Rs. 33,51,515 were not included in computation of the total income. The AO passed an order of intimation in which the aforesaid amount of Rs. 33,51,515 was included in the total income. However, while working out the tax liability, the AO did not charge additional tax leviable under s. 143(1A) of the Act. 1.2 On discovering this omission, the AO issued notice under s. 154. The c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had declared total income of Rs. 2,05,139 only. In view of adjustment made to the returned income, the learned CIT(A) held that omission to charge additional tax was a mistake apparent from record and, therefore, he dismissed the appeal of the assessee on this ground. 2.1 Before us, the assessee filed a paper book consisting of 25 pages. This, inter alia, consists of a summary marked 'original' on p. 16. In this summary, short-term capital gains is shown at Rs. 94.78 in column 6. Column 7 regarding long-term capital gains does not contain any figure and it is blank. Page 25 contains another summary marked 'revised' in which long-term capital gain is shown at Rs. 40,74,437 in column 7, but this amount or any other amount has not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, in either case, the returned income was Rs. 2,05,139.74. The fact that the assessee had paid sufficient amount as advance tax to cover tax on the impugned capital gains or the details regarding capital gains had been annexed with the return does not alter the fact that the returned income was Rs. 2,05,139.74. 3.2. The second issue is whether the AO had made any adjustment to the returned income or not. On perusal of the order of intimation, it is seen that the AO started with the income of Rs. 2,05,140, which was the returned income. In the second column, he entered the figure of Rs. 33,51.515, which represents long-term capital gains. He did not aggregate these incomes probably because rates applicable to them were different. The t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h, 2001. The corresponding order of the assessment was made by the Dy. CIT, Circle-3(4), Satara (hereinafter called the AO), on 2nd Feb., 1999, under the provisions of s. 143(3) r/w s. 147 of the IT Act, 1961. The assessee has taken up two substantive grounds of appeal, namely, that the learned CIT(A) erred in-(i) confirming addition of Rs. 9,15,928 under s. 54F(2), and (ii) holding that ss. 54F(1) and 54F(2) deal with two different situations. The facts of the case, as narrated by the learned CIT(A), which have not been disputed, are that the assessee sold a school building on 1st April, 1994, leading to liability under the head 'Capital gains'. He did not own any residential property on that date. He purchased a house property on 9th Nov. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als with a situation where the assessee purchases second residential property within two years of the sale of original asset. In such a situation, the amount of exemption granted under s. 54F(1) is deemed to be income of the year in which second house property is acquired. 6.1 The arguments of the learned counsel before us were the same as before the learned CIT(A). It was pointed out that capital gains, not chargeable in asst. yr. 1995-96, are now sought to be taxed in asst. yr. 1996-97. It was argued that the provisions should be read down where the exemption continues to be available under proviso to s. 54F(1). On the other hand, the learned Departmental Representative relied on the order of authorities below and in particular that of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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