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2005 (6) TMI 25 - HC - Income TaxLong-term capital gains - sale of factory along with machineries, furniture - exemption under section 54E - "(i) Whether Tribunal was right in upholding the Commissioner of Income-tax (Appeals) order that the sale of factory along with machineries, furniture shall be treated as long-term capital gains in spite of the fact that depreciation had been claimed on the building, machinery and furniture? (ii) Whether the proviso to section 50 would be applicable in respect of depreciable assets sold along with non-depreciable assets sold in a single transaction of sale?" – Held that Land is not a depreciable asset. Section 50 deals only with transfer of depreciable assets. Once the 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 to a particular asset. – Hence revenue’s appeal is dismissed
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