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2009 (8) TMI 680 - MADRAS HIGH COURTCapital gains - Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in confirming the order of the Commissioner of Income-tax (Appeals) holding that only the capital gains on the building had to be computed as short-term capital gains and the balance value of the land should be treated as long-term capital gains, even though the land and building being one composite asset and the assessee having claimed depreciation on the said asset, as per the provisions of section 50, the entire profit was assessable as short-term capital gains ?2. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee was entitled to exemption under section 54EC of the Income-tax Act ? Held that - land is not a depreciable asset, section 50 of the Act deals only with the transfer of depreciable assets. Once land forms part of the assets of the undertaking and the transfer is of the entire undertaking as a whole, it is not possible to bifurcate the sale consideration. Section 50 applies when depreciable assets alone are transferred.
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