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of <h1>Tribunal affirms CIT(A) decision on Long Term Capital Gains, highlights correct tax provisions application.</h1> <h3>Income Tax Officer (Exemption), Ward, Vadodara Versus Matrushri Gangaba Trust</h3> Income Tax Officer (Exemption), Ward, Vadodara Versus Matrushri Gangaba Trust - TMI Issues:1. Whether the deletion of Long Term Capital Gains (LTCG) by the ld. CIT(A) was justified.2. Applicability of Section 50C in assessing Capital Gains.3. Transfer of property and assessment of Capital Gains.Analysis:1. The appeal pertains to the deletion of LTCG of Rs. 1,83,76,000 by the ld. CIT(A) for the assessment year 2007-08. The assessee, a private trust, derived income from interest. The Assessing Officer assessed the LTCG from the sale of immovable property at Rs. 1,83,76,000 under Section 50C. The ld. CIT(A) partly allowed the appeal of the assessee, leading to the current appeal by the Revenue.2. The Assessing Officer, based on AIR Information, noted a sale deed for Rs. 2.00 crores in respect of immovable property. However, the applicability of Section 50C was disputed as the word 'or assessable' was inserted in the section by the Finance Act, 2009, effective from 01/04/2009. Therefore, the provisions of Section 50C could not be applied for the year under consideration. The property was transferred on 15/07/2006, and subsequent transfers led to Capital Gains assessed in the hands of other parties, not the assessee.3. The property in question was transferred to another entity, resulting in Capital Gains assessed in their hands. The ld. CIT(A) rightly held that the property could not be assessed again in the hands of the assessee. The detailed and reasoned order of the ld. CIT(A) was upheld, stating that the Capital Gains had already been assessed in the hands of the entity that purchased the property from the assessee. Therefore, the appeal by the Revenue was dismissed, affirming the decision of the ld. CIT(A).In conclusion, the Tribunal upheld the decision of the ld. CIT(A) to delete the LTCG and dismissed the Revenue's appeal, emphasizing the correct application of tax provisions and the assessment of Capital Gains in the hands of the appropriate entities involved in the property transactions.
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