1.  The Tata Power Co. Ltd., Vs. Addl. CIT, Range 2(1), I.T.A No.3382/ Mum/2010 Assessment year: 2005-06, Dated : 31st May 2011, ITAT - Mumbai

While s. 54EC is an exemption provision which exempts capital gains and takes them outside the purview of chargeable “capital gains”, s. 74 deals with the carry forward and set off of loss under the head “capital gains”. The stage at which set off of carried forward long term capital loss is to be given is subsequent to the stage at which income under the head capital gains is computed and deduction u/s 54EC is to be given in the course of the latter. Accordingly, s. 54EC deduction has to be given before set-off of losses.

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2.  INCOME TAX OFFICER (TDS) Vs. M/s MORAJ BUILDING CONCEPTS PVT LTD, ITANo.1232/Mum/2010, Assessment Year: 2006-2007, Dated: 18th March 2011, ITAT - Mumbai

Whether penalty can be levied if assessee files delayed return for lack of PAN nos of payees as they were ordinary laborers but tax was deposited.

The findings constitute reasonable cause for the delay. Though the penalty order refers to section 206 / 206C, the default, as found by the CIT (A) and as explained is u/s 200(3). It may also be added that the penalty order seems to be in a cyclostyled form without referring even to the appropriate section. This may show non-application of mind. On the findings recorded by the CIT (A), which are not disputed by the revenue, the Court is unable to say that the assessee was not prevented by reasonable cause.

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