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2010 (3) TMI 761 - AT - Income TaxReopening of assessment - LTCG or STCG - Condonation of delay - Addition - According to the assessee, Assessing Officer traveled much beyond the reason for which the assessment was reopened and this is against law. - there is no dispute that the reason for reopening was variance in the rental income as shown by assessee in its return and as reflected in the TDS certification filed by it - Held that: - the law as it stands today could not be interpreted in such a way to hold that in the circumstances of this case, the Assessing Officer had traveled beyond the reason for which reopening was made. Thus in our opinion, the Assessing Officer had power to consider such capital gains in the reassessment proceedings if it was exigible to tax. Transfer of capital assets - section 45(4) - Held that: - The expression 'otherwise' appearing in sub-section (4) has not to be read 'ejusdem generis' with the expression 'dissolution of a firm or body of AOP - CIT(A) fell in error when he held that there was no exigibility to capital gains tax on dissolution of a firm Computation of capital gain - Held that: - total consideration received for both land and building has to be bifurcated between value of land and value of building and the gains arising out of land need to be treated as long term capital gain whereas the gain arising out of buildings has to be considered as short term capital gain, for the simple reason that the assessee was claiming depreciation on such building - Just because in the impugned Assessment Year assessee had not claimed depreciation for building would not make any impact on the method to be followed for working out the capital gain.
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