R.RAMAKRISHNAN Vs. CENTRAL BOARD OF DIRECT TAXES

JUDGEMENT

(1.) In the instant petition, petitioner has sought for the following reliefs:

(2.) Petitioner who is an income tax assessee had filed assessment returns for the year 2002-03. He has sold the property on 03.08.2002 which has attracted capital gain. For the purpose of exemption of tax on the capital gain, petitioner should have reinvested the money on or before 03.02.2003 in terms of provisions of the Income Tax Act. Petitioner had reinvested on 05.02.2003. Thus, there is delay of 2 days. In this backdrop, on 24.08.2003 assessment order was passed while determining income from capital gains as computed by the assessee i.e., Rs.24,99,119/- or Rs.24,99,120/-. Tax would be Rs.4,99,824/-, further surcharge at 5% and interest as per Section 234(A) and (B) amounting to Rs.6,98,003/-.

(3.) Dissatisfied with the assessment tax on capital gains, petitioner chose to file a revision under Section 264 of the Income Tax Act, 1961 before the Commissioner of Income Tax, Bengaluru. On 21.07.2006, the Commissioner of Income Tax, Bengaluru dismissed the petitioner's petition on the ground that Assessment order cannot be revised as there is no provision in the Income Tax Act to condone the delay in making any investment in specified bonds as per the provisions of Section 54(EC).