9911796707
TMI Blog2021 (8) TMI 901X X X X Extracts X X X X X X X X Extracts X X X X ..... be computed on the basis of method followed by the assessee consistently which is stated to be FIFO method. We note this was the contention of the assesse before the first appellate authority. The capital gain is required to be computed on the basis of FIFO method and not on LIFO method as has been done by the AO. In other words, the capital gain on sale of shares by the assessee is to be computed by taking the cost of shares on LIFO basis meaning thereby that bonus shares issued on 17.07.2013 are not to be taken following the FIFO method. It is for this reason, we are not in agreement with the conclusion drawn by the CIT(A) and accordingly we restore the matter back to the file of the AO with the direction to compute the short term capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res for the calculation of STCG . 3. On these facts and under these circumstances , the learned CIT (A) erred in confirming the addition by learned AO of ₹ 23,44,2177- in addition to the STCG of ₹ 2,31,5157- already offered for tax by the Appellant. 4. Without prejudice to the above , it is humbly submitted that on these facts and under these circumstances , the case may be remanded back for considering the calculation of STCG under Income Tax Act 1961 5. Your Appellant craves leave to add, alter , delete, and or alter all or any of the above grounds. 3. The only effective issue raised by the assessee in the various grounds of appeal is against the order of Ld. CIT(A) upholding the order of AO confirming the addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missed by observing that the assessee has himself admitted that this short term capital gain could not be offered to tax due to mistake of the accountant of the assesse. While dismissing the appeal the Ld. CIT(A) brushed aside the contentions of the assessee qua the fact that the computation of capital gain on the sale of share should be computed by taking the cost of shares on the basis of first come first out. The ld AR submitted before the ld CIT(A) that there was an error on the part of ICICI Bank in reporting the facts with which the assessee maintained his Demat account. The assessee argued before the Ld. CIT(A) that assessee was holding 8450 shares and later on received bonus share of 4225 in respect of L T Ltd . According to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee before us. Under these circumstances, we are of the opinion that the capital gain of the assessee should be computed on the basis of method followed by the assessee consistently which is stated to be FIFO method. We note this was the contention of the assesse before the first appellate authority. In our opinion, the capital gain is required to be computed on the basis of FIFO method and not on LIFO method as has been done by the AO. In other words, the capital gain on sale of shares by the assessee is to be computed by taking the cost of shares on LIFO basis meaning thereby that bonus shares issued on 17.07.2013 are not to be taken following the FIFO method. It is for this reason, we are not in agreement with the conclusion drawn ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
