2023 (2) TMI 809

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tion for the assessment year 2014-15 by issuing a revised Form 3 seeking additional demand. 2. The petitioner fled his return of income for assessment year 2014-15 declaring a total income of Rs.64,47,850/-. The case was selected for scrutiny, and an order of assessment came to be passed under section 143(3) of the Income Tax Act, 1961 ('the Act') on 16th December 2016. An amount of Rs.98,75,513/- was added to the income of the petitioner. 3. An appeal was preferred by the petitioner before the Commissioner of Income Tax (Appeals). Rectification application also came to be fled by the petitioner before the Assessing Officer seeking rectification of the computation of the tax payable. Rectification application was allowed holding that ther....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....xed as long term capital gain at a lower rate of 20%. 7. Objections raised by the petitioner were rejected by virtue of communication, dated 29th October 2021. What is stated in the communication, dated 29th October 2021 which is impugned in the present petition justifying the issuance of the revised Form 3 is the fact that during the assessment proceedings under section 143(3), as against the returned income of Rs.46,67,850/- by the petitioner an addition of Rs.98,75,513/- was made determining the total income at Rs.1,63,23,363/- and the same was taxed at the rate of 30% denying the claim of exemption of Long Term Capital Gain (LTCG) under section 10(38) of the Act and taxed the same as unaccounted income. 8. Reliance was placed upon the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ication. It was stated that the order passed under section 154 by the Assessing Officer on 2nd November 2021 was erroneous and that after rejection of the claim of adding long term capital gain of the petitioner by the Assessing Officer, such addition was made as 'uncounted income' ought to be charged to tax in accordance with the rigor of the provisions of section 115BBE of the Act only. 12. We have heard learned counsel for the parties. 13. Admittedly, post the order of assessment under section 143(3) of the Act, the Assessing Officer passed an order on the application seeking rectification in terms of section 154 of the Act, which reads as under : Order u/s. 154 of the Income Tax Act, 1961 1. In this case the assessee filed its re....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e disputed tax in such cases would be calculated after giving effect to the rectification order passed, if any. 15. Reference in this regard can be made to the clarification issued by the Central Board of Direct Taxes ("CBDT") vide circular No.9 of 2020 dated 22 April 2020 and in particular Question No.25 thereof, which reads as under : Question No.25 Answer In a case appeal or arbitration is pending on the specified date, but a rectification is also pending with the AO which is accepted will reduce the total assessed income. Will the calculation of disputed tax be circulated on rectified total assessed income ? The rectification order passed by the AO may have an impact on determination of disputed tax, if there is reduction or incre....