TaxTMI 
TaxTMI 
2016 (6) TMI 523
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....t order dated 30.11.2012 passed by the learned Assessing Officer u/s 143(3) of the Income Tax Act,1961(Hereinafter called "the Act"). 2. The grounds raised by the assessee in the memo of appeal filed with the Income Tax Appellate Tribunal, Mumbai (hereinafter called "the Tribunal") reads as under:- " I Denial of Indexation benefit by the CIT(A) on Long Term Capital Gains. 1. The learned C.I.T. in her order dated 19th July, 2013 has erred in denying the benefit of indexation on Long Term Capital Gains accruing on sale of mutual fund units of HSBC Fixed Term Series 59. 2. The learned C.I.T. has failed to appreciate that the option of exercising indexed cost and paying tax on long term capital gains @ 20% or not exercising the opti....
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....ncome of the assessee and brought it to tax at special rate of 20% without giving the benefit of cost inflation indexation, vide assessment orders dated 30.11.2012 passed u/s. 143(3) of the Act . 5. Aggrieved by the assessment order dated 30.11.2012 passed by the A.O. u/s 143(3) of the Act, the assesssee filed an first appeal before the CIT(A). 6. Before the CIT(A), the assessee submitted that benefit of cost inflation indexation should be granted to the assessee and submitted the working as under:- The capital gains working post indexation is as under: Capital gains on redemption of HSBC MF funds Units: Full value of sale consideration - 16.07.2009 Rs. 1,44,84,120/- Less indexed cost of acquisition purchase date- 15....
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....und that the said long term capital gains are not declared in the return of income filed by the assessee with the Revenue. The ld. Counsel for the assessee submitted that as per Section 112 of the Act read with the first proviso to Section 112(1) of the Act, the afore-stated benefit of option of paying tax on long term capital gains @20% after indexation or 10% without availing the benefit of indexation has to be granted to the assessee and merely because the gains are not declared in return of income filed with the Revenue, the benefit of choosing option of paying tax at the rate of 20% or 10% as the case may be cannot be denied to the assessee. The ld. Counsel relied upon the decision of Hon'ble Bombay High Court in the case of CIT v. Pru....
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....of the Act. However, with respect to the income arising from the transfer of long term capital asset being listed securities or units or zero coupon bonds for the instant assessment year under appeal shall be chargeable to tax @ 10% of the amount of capital gain before giving effect to the second proviso to Section 48 of the Act i.e. without applying cost inflation index to the cost of acquisition or cost of improvement of the said capital assets being listed securities or units or zero coupon bonds . The above stated chargeability to tax of long term capital gains with or without the benefit of indexation u/s 112 of the Act read with second proviso to Section 48 of the Act, is to be availed at the option of the tax-payer whichever is mo....
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.... transfer of a long-term capital asset, being listed securities ^10[or unit] ^11[or zero coupon bond], exceeds ten per cent of the amount of capital gains before giving effect to the provisions of the second proviso to section 48, then, such excess shall be ignored for the purpose of computing the tax payable by the assessee. ^12[Explanation.-For the purposes of this sub-section,- (a) "listed securities" means the securities- (i) as defined in clause (h) of section 2^13 of the Securities Contracts (Regulation) Act, 1956 (32 of 1956); and (ii) listed in any recognised stock exchange in India; (b) "unit" shall have the meaning assigned to it in clause (b) of Explanation to section 115AB.]] ****** ******" The taxes are ....