COMMISSIONER OF INCOME TAX Vs. EICHER GOODEARTH LTD

JUDGEMENT

(1.) The Revenue is aggrieved by an order dated 28th October, 2005 passed by the Income Tax Appellate Tribunal, Delhi Bench 'B' in ITA No.84/Del/2002 relevant for the assessment year 1997-98.

(2.) The Assessee filed its return of income in which it included a long term capital gain of Rs.6,63,746/- as a part of the book profits calculated under Section 115JA of the Income Tax Act, 1961 (the Act). The Assessee computed tax at 20% in respect of the long term capital gain and at 40% in respect of the remaining income.

(3.) In an intimation under Section 143(1)(a) of the Act, the Assessing Officer noted that the returned total income under Section 115JA of the Act was Rs. 39,50,258/- and he levied tax on this at 40%. According to learned counsel for the Assessee this was incorrect and tax should have been levied on the long term capital gain at 20% and at 40% on the rest of the income.