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2013 (11) TMI 910 - HC - Income TaxDeduction available u/s 54EC with capital gains u/s 50 - sale of depreciable assets – Held that:- There is nothing in Section 50 to suggest that the fiction created in Section 50 is not only restricted to Sections 48 and 49 but also applies to other provisions - Section 54E does not make any distinction between depreciable asset and non-depreciable asset and, therefore, the exemption available to the depreciable asset under Section 54E cannot be denied by referring to the fiction created under Section 50 - The benefit of Section 54E will be available to the assessee irrespective of the fact that the computation of capital gains is done either under Sections 48 and 49 or under Section 50 - The legal fiction created by the statute is to deem the capital gain as short term capital gain and not to deem the asset as short term capital asset. Following CIT Vs. Assam Petroleum Industries (P.) Ltd. reported in [2003 (6) TMI 23 - GAUHATI High Court] - Capital gain arising of long term capital asset, if invested in specified asset, the assessee is not to be charged capital gains and exemption provided under Section 54EC of the Act cannot be denied to the assessee only on account of the fact that deeming fiction is created under Section 50 of the Act - Legal fiction created under Section 50 of the Act is though restricted to computation of capital gains, such deeming fiction cannot restrict application of Section 54EC which allows exemption of capital gains, if assessee makes investment in the specified assets - Decided against Revenue.
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