2026 (4) TMI 647

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....0,31,124/-, being capital work-in-progress, while computing the capital gain u/s. 50B of the Income Tax Act, 1961 ('the Act' for short). 3. Briefly stated, the assessee is a resident corporate entity. For the assessment year under dispute, the assessee filed its return of income on 30.11.2015, declaring total income of Rs. 35,92,65,798/- under the normal provisions of the Act. Whereas, the assessee offered book profit of Rs. 29,26,08,200/- u/s. 115JB of the Act. 4. In course of assessment proceeding, the assessee, through letter dated 29.11.2017 furnished a revised computation of income, recomputing capital gain u/s. 50B of the Act at Rs. 28,86,78,997/- as against the capital gain of Rs. 34,57,10,121/- offered in the original return o....

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....ering the correct income. Accordingly, he allowed assessee's claim. 7. Before us, ld. Departmental Representative ('ld. DR' for short) strongly relied upon the observations of the A.O. 8. Per contra, ld. Counsel appearing for the assessee submitted that through the revised computation, the assessee did not make any fresh claim of deduction before the A.O. He submitted, while computing capital gain on slump sale in terms with section 50B of the Act, since the assessee had left out one item of capital work-in-progress, revised computation correctly computing capital gain was filed. Thus, he submitted, ld. First appellate authority was justified in allowing assessee's claim. He submitted, the A.O. rejected assessee's claim only for the r....

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....course of assessment proceeding, however, he has not commented upon acceptability or otherwise of assessee's claim in the revised computation. Merely because the claim was not made through revised return of income, for that reason alone the A.O. has rejected assessee's claim. 10. On perusal of the impugned order of ld. First appellate authority, it is evident that through written submission, the assessee had explained in detail the necessity of filing the revised computation of income to rectify the mistake committed in the original return of income qua computation of capital gain u/s. 50B of the Act. After appreciating assessee's explanation upon examining the facts and materials brought before him, ld. First appellate authority had all....