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2011 (6) TMI 506 - AT - Income TaxExemption u/s 54EC on STCG u/s 50 - benefit of cost inflation index u/s 48 - assessee adopted the fair market value of the flat sold at Rs 33 lakhs as on 1.1.1981 based on valuation report of a Registered valuer - Held that - As decided in CIT Versus Ace Builders (P.) Ltd.[2005 (3) TMI 36 - BOMBAY HIGH COURT] in the case of depreciable assets the deemed fiction created under sub-section 1 & 2 of Sec.50 is restricted only to the mode of computation of capital gains contained under Sec.48 & 49 and does not apply to any other provision. The fiction created by the legislature is to be confined to the purpose for which it is created. Further, Sec.54E does not make any distinction between depreciable asset and non-depreciable asset. Exemption available under Sec. 54E (sic) cannot be denied by referring to the fiction created under Sec.50. Benefit of Sec.54E (sic) is available to the assessee irrespective of the fact that the computation of capital gains is done either under sec.48 & 49 or u/s 50 - Thus the assessee is entitled to relief u/s 54E in respect of capital gains computed u/s 50 in respect of transfer of depreciable asset - Decided in favor of the assessee
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