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| The Tax Publishers2019 TaxPub(DT) 7164 (Mum-Trib) INCOME TAX ACT, 1961
Section 50
Assessee was engaged in the business of purchase and sale of properties, and was constantly offering rental receipts during intervening period as its income from business by treating the assets as business assets, on which depreciation was otherwise allowable, therefore, it had rightly worked out 'short-term capital gain' (STCG) on the basis of difference of sale consideration and written down value (WDV) of the concerned 'block of assets' and AO was not justified in assessing LTCG treating assessee as normal investor.
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Capital gains - Applicability of section 50 - Sale of properties being in the nature of 'depreciable assets' - AO worked out long-term capital gain (LTCG) on sale of properties
Assessee sold certain properties, which were in the nature of 'depreciable assets' and forming part of the 'block of assets' of assessee. AO treating assessee as a normal investor, worked out long-term capital gain (LTCG) on sale of properties instead of reducing the sale consideration from block of assets' under section 50. Held: Assessee was engaged in the business of purchase and sale of properties, and was constantly offering rental receipts during intervening period as its income from business by treating the assets as business assets, on which depreciation was otherwise allowable, therefore, it had rightly worked out 'short-term capital gain' (STCG) on the basis of difference of sale consideration and written down value (WDV) of the concerned 'block of assets'.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
INCOME TAX ACT, 1961
Section 32(1)(c)
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