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| The Tax Publishers2019 TaxPub(DT) 8225 (Bom-HC) INCOME TAX ACT, 1961
Section 45
Where Tribunal had held that capital gain was not taxable in relevant assessment year (2007-08) and it was taxable in year 2003-04 without giving consequential direction for taxing such gains, considering that assessee could raise plea as regards time limitation, such directions were issued by Court.
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Capital gains - Year of chargeability - Directions to tax capital gains in relevant year not issued by Tribunal while disposing the appeal -
Revenue challenged order of Tribunal in relation to assessment year 2007-08. Issue was related to taxability of capital gain and Tribunal had held that it could be taxed only in assessment year 2003-04. Revenue contended that Tribunal did not give consequential directions for taxing such gain in hands of assessee in year 2003-04, therefore, assessee could object assessment for said year on time limitation. Held: In absence of any such specific direction, there was a risk of assessee arguing that AO could not reopen assessment, as there was no directions issued by Tribunal for taxing income for said year. To put entire issue beyond possibility of doubt or debate, such directions were issued. It was found that subsequent to Tribunal's order, AO had already passed a fresh order of assessment for assessment year 2003-04 taxing capital gain in said year. Thus, above direction would operate from date of judgment of Tribunal, which in any case Tribunal ought to have issued.
REFERRED : Chaturbhuj Dwarkadas Kapadia v. CIT (2003) 260 ITR 491 (Bom.) : 2003 TaxPub(DT) 1029 (Bom-HC)
FAVOUR : Directions issued (In favour of revenue)
A.Y. :
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