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| The Tax Publishers2020 TaxPub(DT) 3978 (Kol-Trib) INCOME TAX ACT, 1961
Section 48
Issue was covered in favour of assessee by referring to the decision in assessee's own case in ITA Nos. 937 & 938/Kol/2018, Order, dated 24-3-2019 for assessment year 2010-11 and ITA No. 1486/Kol/2019, Order, dated 22-7-2020 for assessment year 2014-15, the issue was decided in favour of assessee, therefore, AO was correct in treating 'Government Securities' as bonds or debentures for the purpose of third proviso to section 48 and consequently disallowing the long-term capital loss on sale of 'Government Securities'.
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Capital gains - Treating 'Government Securities' as Bonds or Debentures for purpose of third proviso to section 48 - Computation of -
The issue for adjudication was whether AO was correct in treating the 'Government Securities' as bonds or debentures for the purpose of the third proviso (now fourth proviso) to section 48 and consequently disallowing the long term capital loss on sale of 'Government Securities'. Held: The proposition that, when fixed return is assured on a capital asset, indexation should not be granted, was not correct. Even on buildings or land fixed rental income is earned. Just because there is fixed returning income, it cannot be concluded that on sale of such asset no indexation would be granted of asset is a long-term capital asset. On a careful consideration of all the facts and circumstances of the case, the issue in question was adjudicated in favour of the assessee in assessee's own case in ITA Nos. 937 & 938/Kol/2018, Order, dated 24-3-2019 for assessment year 2010-11 and ITA No. 1486/Kol/2019, Order, dated 22-7-2020 for assessment year 2014-15.
Followed:DCIT v. The Peerless General Finance & Investment & Co. Ltd. [ITA No.1486/Kol/2019, dt. 22-7-2020] Peerless General Finance & Investment Co. Ltd. v. DCIT (& Vice-Versa) 2019 TaxPub(DT) 8427 (Kol-Trib)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2015-16
IN THE ITAT, KOLKATA BENCH
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