Mistake indetermining the rate of tax cannot be consider as consealment of income

Last updated: 31 August 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Brief facts of the case are that the assessee has declared long term capital gains of `.1,28,258,902/- out of which long term capital gain, of `.3,75,902/- pertained to listed shares. The entire LTCG was claimed as exempt under section 10(38) including the capital gain of `.1,24,50,000/- pertaining to sale of unlisted shares. The assessee had accordingly offered tax at the rate of 10% without taking the benefit of indexation. During the course of the assessment proceedings, the assessee was required by the Assessing Officer as to why the long term capital gain should not be taxed at the rate of 20% instead of 10% as most of the shares were unlisted. The assessee thereafter revised the computation of long term capital gain at `.1,22,65,695/- after taking the benefit of indexation and admitted that due to the bonafide mistake, the tax was paid at the rate of 10% instead of 20%

Citation :
The ACIT, 18(1), Mumbai (Appellant) Vs. Shri Amit Bajaj, 13/14, Adarsh Nagar, Worli, Mumbai-400 025. (Respondent)