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2010 (12) TMI 946 - HC - Income TaxLTCG or STCG - Slump sale or sale of a depreciable asset - profit arose on transfer of Sonepat Unit by the assessee would be to be treated as long term capital gain or short term capital gain as treated by the AO - Held that:- When an undertaking is sold, it is to be understood in contra-distinction, a whole of undertaking. From this itself, it would clearly follow that Section 50 dealing with the depreciable asset would not be applicable when the entire Sonepat Unit as a going undertaking was sold by the assessee - the judgments cited by the Revenue would have no application in the instant case. Commonwealth Trust Limited (1997 (7) TMI 14 - SUPREME Court) was a case where the assessee was possessed of considerable property at Calicut and Mangalore, it had claimed depreciation for its factory building which had been allowed in the previous years. During the period relevant to the assessment year in question, the assessee had sold some those properties on which it had already claimed depreciation. It was in this context, the question of applicability of Section 50 arose. The depreciable properties were sold and that was not a case where the entire undertaking as a going concern with locked stock barrel was sold by the assessee - Decided in favor of the assessee
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