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| The Tax Publishers2020 TaxPub(DT) 2559 (Bang-Trib) INCOME TAX ACT, 1961
Section 50
Where assessee contested applicability of section 50, on ground that assets sold by it was land outside ambit of section 50, considering finding given by CIT(A) that as per description of property given in both partnership deed and sale deed, property in question was not vacant site but building was constructed on it, there was no reason to interfere with order of CIT(A).
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Capital gains - Applicability of section 50 - Land sold by assessee, whether land, which is non-depreciable asset -
Assessee was aggrieved by order of CIT(A) confirming addition of Rs. 16,34,34,975 (Treated as income from Short-Term Capital Gains). It contended that CIT(A) wrongly treated profit on sale of asset (vacant land) as Short-Term Capital Gains holding that it formed part of block of assets in companies' books. Held: Before CIT(A), it was submitted by assessee that asset sold was land and therefore, section 50 was not applicable because land was not a depreciable asset. CIT(A) gave finding that as per description of property given in both partnership deed and sale deed, it was apparent that property in question was not vacant site as claimed by assessee but building was constructed on it. Consequently, it was included in Schedule of assets under land and building and therefore, AO was correct in applying section 50. Thus, in absence of any documentary evidence in support of assessee's claim that the property sold in question was not a depreciable asset, there was no reason to interfere in order of CIT(A).
REFERRED :
FAVOUR : Against the assessee
A.Y. : 2016-17
IN THE ITAT, BANGALORE BENCH
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