|P had offered capital gains to tax in the years in which the flats were sold and the moneys received by him and paid the tax. Subsequently, the Assessing officer re-opened the earlier year in which agreement was made and possession handed over, and brought the entire gains to tax in that year. The stand of the department has been upheld in appeal upto the High Court. P wishes to know whether the department will automatically adjust the taxes paid for the subsequent years or whether he has to claim refund for those years. How will interest be calculated, since the taxes have already been paid for other years?
|Click here to read the full answer of the expert
|CA. H. N. Motiwalla
|capital gains, refund, set off of refund
The provisions of section 245 of the Act, are for the benefit of both department and the taxpayer. Therefore, it would be duty of the AO to set-off under this section if the assessee claims it and proves that he is entitled