Tribunal allows appeal, deletes unexplained cash credit, directs correct exemption for Long Term Capital Gain.

The appeal was allowed, and the addition of unexplained cash credit was deleted. The Tribunal directed the Assessing Officer to allow the claim of exemption for Long Term Capital Gain on the sale of shares at the correct amount of Rs.47,71,191, based on a decision of the Jurisdictional High Court. The Tribunal emphasized that the exemption could be granted without the need for a revised return of income.

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Issues:
- Appeal against addition of unexplained cash credit under section 68 of the Income Tax Act.
- Discrepancy in Long Term Capital Gain (LTCG) amount claimed as exempt under section 10(38).
- Whether the claim of exemption can be allowed without filing a revised return of income.

Analysis:
1. The appeal was filed against the addition of Rs.1,43,449 as unexplained cash credit under section 68 of the Income Tax Act. The assessee claimed LTCG on the sale of shares at Rs.46,27,742, which was found to be Rs.47,71,191. The Assessing Officer (A.O.) added the difference as unexplained cash credit, as the claim was not made through a revised return of income. The ld. CIT(A) upheld the addition, stating that no benefit could be given to the assessee as no revised return was filed.

2. The assessee argued that the LTCG was actually at Rs.47,71,191 and the claim was mistakenly shown as Rs.46,27,742. Citing a decision of the Hon'ble Jurisdictional High Court, the assessee contended that the appellate authorities have the jurisdiction to entertain such claims. The ld. CIT(A) erred in not allowing the claim of exempt LTCG at Rs.47,71,191. The Departmental Representative (DR) supported the lower authorities' findings.

3. The Tribunal examined the submissions and found no dispute regarding the facts. The LTCG on the sale of shares was indeed Rs.47,71,191, claimed as exempt at Rs.46,27,742. Relying on the decision of the Hon'ble Jurisdictional High Court in a similar case, the Tribunal directed the A.O. to allow the claim of exemption under section 10(38) for LTCG on the sale of shares at Rs.47,71,191. Consequently, the Tribunal ordered the deletion of the addition of Rs.1,43,449.

4. In conclusion, the appeal filed by the assessee was allowed, and the addition of unexplained cash credit was deleted. The Tribunal's decision was based on the settled principle established by the Hon'ble Jurisdictional High Court, emphasizing the allowance of the exemption without requiring a revised return of income.

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