Rectification of long-term capital gain computation allowed recall to examine indexation benefit after section 54 exemption.

In rectification proceedings concerning computation of long-term capital gain, the Tribunal accepted that taxable gain still remained after exemption under section 54, so its earlier observation that no capital gain survived was a mistake apparent from the record. The order was recalled only to that limited extent so the period from which indexation benefit should be allowed could be examined in computing the capital gain. The issue of adopting guideline value under section 50C was not pursued further and was not adjudicated.

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Issues: Whether the order of the Tribunal suffered from a mistake apparent on the face of the record in treating the balance capital gain as non-existent after allowing exemption under section 54, and whether the question of the period from which indexation benefit was to be granted required adjudication.

Analysis: The assessee's rectification plea was examined in the context of computation of long-term capital gain. The Tribunal accepted that, even after allowing exemption under section 54, some taxable long-term capital gain would still remain. On that basis, the earlier observation that no capital gain survived for taxation was found to be erroneous for rectification purposes. The issue relating to adoption of guideline value under section 50C was not pursued further and was not taken up for adjudication.

Conclusion: The order was recalled to the limited extent necessary for examining the period from which indexation benefit should be allowed while computing long-term capital gain.

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