9911796707
TMI Blog2008 (7) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... ns. 4. The facts, in brief, are that assessee is a practicing advocate. The IDBI had issued deep discount bonds in January/March, 1992. The assessee purchased 64 deep discount bonds between February and April, 1999 through Bombay Stock Exchange for a total cost of ₹ 4,90,480 which were held by the assessee as investments. These deep discount bonds were redeemed by IDBI on 31-3-2002 resulting into a gain of ₹ 2,77,520 which was offered by the assessee as long-term capital gain. The assessing officer asked the assessee as to why Circular No. 2 of 2002, dated 15-2-2002 issued by the CBDT should not be applied and, accordingly, such gain was to be treated as 'income from other sources' ? The assessee stated that the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , since the assessee had not offered any income to tax in the earlier years in absence of the said Circular, hence, computation methodology provided in that para could not be applied and, therefore, the said circular could not be made applicable in the case of assessee. He also submitted a copy of written note on the above aspects which also contained the details of case law relied on by the assessee. 6. The learned Departmental Representative, on the other hand, placed strong reliance on the order of revenue authorities and also submitted that circular was issued in the benefit of larger public, hence, it was to be followed. 7. We have considered the submissions made by both sides, material on record and orders of authorities below. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned Commissioner (Appeals) is not correct in law. Accordingly, we reverse the same and direct the assessing officer to accept the claim as made by the assessee. Thus, this ground of the assessee is accepted. 8. In ground No. 2, the assessee is aggrieved by the decision of learned Commissioner (Appeals) in confirming the assessing officer's decision for charging interest under Sections 234B and 234C of the Act. This ground is consequential to ground No. 1 and in view of our decision in respect thereof, the assessee is not liable to pay any interest under Sections 234B and 234C of the Act. Thus, this ground is dismissed as infructuous. 9. In the result, appeal filed by the assessee stands partly allowed. - - TaxTMI - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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