Case Law Details
Wellman Coke India Limited Vs DCIT (ITAT Kolkata)
ITAT Kolkata held that rejection of claim of long-term capital loss u/s 50B of the Income Tax Act unjustified as Form 3CEA filed during the assessment proceedings along with an affidavit mentioning reason for non-furnishing of Form 3CEA with return of income.
Facts- The assessee is a Limited Company and its case was selected for complete scrutiny assessment under the E-assessment Scheme, 2019 on the issue of capital gain/loss from slump sale and capital gain/income on the sale of the property. NIL income was declared. Notices u/s. 143(2) and 142(1) were issued through the e-filing Portal and were duly served upon the assessee.
AO observed that the tax at source at Rs.13,25,000/- has been deducted u/s. 194IA of Act by Mahalaxmi Wellman Fuel LLP on the sale consideration of immovable property sold by the assessee. AO noticed that Schedule CG of the Income Tax Return, long-term capital loss from slump sale is declared at Rs.6,25,79,960/-. AO perused the provision of Section 50B of the Income Tax Act, which is a special provision for computation of capital gain in case of slump sale read with Section 2(42C) of the Income Tax Act. For falling under this section, assessee has to obtain Form 3CEA as provided in Rule 6H of the Income Tax Rules and the said Form 3CEA needs to be filed along with the return of income.
AO noticed that Form 3CEA has not been uploaded on the Income Tax Portal. AO was of the view that Form 3CEA was to be filed before the due date of filing of the return as specified u/s. 139(1) of the Act along with the return of income using a Digital Signature Certificate and in the absence thereof, the long-term capital gain/ loss from slump sale claimed under Section 50B of the Income Tax Act was disallowed and added to the income of the assessee.
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