Capital gains computation under Section 50B: revised computation valid for correcting omitted work-in-progress without a revised return.

A bona fide correction in a slump-sale capital gains computation under Section 50B can be accepted through a revised computation during assessment, even without a revised return, where the omitted capital work-in-progress is supported by the accounts and fixed asset records. The department's objection based only on the absence of a revised return was insufficient because no adverse finding was made on the correctness of the claim itself. The reduction of capital work-in-progress was therefore permissible on the facts recorded.

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Issues: Whether the assessee could reduce the amount representing capital work-in-progress while computing capital gains under Section 50B of the Income-tax Act, 1961 through a revised computation filed during assessment, without filing a revised return of income.

Analysis: The undertaking was transferred by way of slump sale and the assessee had originally offered capital gains under Section 50B. It was found that capital work-in-progress had been omitted by mistake from the original computation, and the revised computation merely corrected that omission. The material on record, including earlier balance sheets and the fixed asset schedule, showed that the work-in-progress had been reflected consistently in the accounts, and no contrary material was brought by the department. The rejection was based only on the absence of a revised return, without any adverse finding on the correctness of the claim itself.

Conclusion: The revised computation was rightly accepted and the reduction of capital work-in-progress was permissible. The issue was decided in favour of the assessee.

Ratio Decidendi: A bona fide correction in the computation of capital gains under Section 50B of the Income-tax Act, 1961 cannot be denied merely because it was made through a revised computation rather than a revised return, where the claim is supported by the record and does not amount to a fresh untenable claim.

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