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2014 (10) TMI 963 - AT - Income TaxTax the capital gain as short term capital gain - whether the tax rate specified in section 112 for long term capital gain was not applicable to the capital gain computed under section 50 in respect of long term asset? - Held that:- n the present case, it is not in dispute that the office premises which was sold by the assessee was a part of the business asset and section 50 is applicable as assessee had claimed depreciation on the same. We are unable to accept the submission of the Ld. Counsel that in the case of Ace Builders Pvt. Ltd. (2005 (3) TMI 36 - BOMBAY High Court) the Hon’ble High Court has held that even capital gain is computed in the manner prescribed u/s.50 in that case also, the same is to be treated as long term capital gain. It is clear from the language used by the legislature that if the long term capital gain is computed then it will suffer the tax @20% as against the normal rate of income tax. Moreover, in the Ace Builders Pvt. Ltd., (supra) their Lordships have explained that if the capital gain is computed as provided u/s.50 then the capital gains tax will be charged as if such capital gain has arisen out of short term capital asset. We have to interpret the judgement or decision as a whole and we cannot interpret in the piecemeal to understand the ratio decidendi. Counsel has also relied on the decision in the case of M/s. P.D. Kunte & Co. (Regd.) (2005 (3) TMI 36 - BOMBAY High Court). It is true that in said case the assessee had taken Ground No.2 which is analogous to the plea of the assessee. But on perusal of the said order, we find that the said ground remained to be adjudicated and there is no decision on this issue. We are not therefore inclined to rely upon the decision in the case of M/s. P.D. Kunte & Co. (Regd.) (Supra). We accordingly approve the interpretation made by the Ld.CIT(A) of section 50 and section 112 and confirm the order on this issue before us. Accordingly, the grounds taken by the assessee are dismissed.
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