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2011 (4) TMI 116 - AT - Income TaxLong term capital gain or short term capital gain - Set off in terms of section 74 - The assessee claimed the benefit of set off of the brought forward loss from the long term capital assets against the income from the transfer of Motors and transformers, which were admittedly held for a period more than 36 months - Section 50 contains a deeming provision and the same has to be restricted only for the purpose of which it is enacted - Since this deeming provision involves only the computation part of the capital gain in the case of depreciable assets, once this computation part is over, the operation of section 50 is also stopped - The amount so computed has to be dealt with in accordance with the relevant provision -Held that: Capital gain has resulted from the transfer of an asset which was held for a period of more than three years and no long term capital gain has entered into the computation of total income of the assessee on this transaction - This amount would retain the character of long term capital gain for all other provisions and consequently qualify for set off against the brought forward loss from the long term capital assets - Hence, the appeal is allowed.
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