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2014 (2) TMI 523 - AT - Income TaxShort Term Capital Gain or Long Term Capital Gains (STCG / LTCG) - sale of composite factory – Held that:- The assessee had sold his bakery including the land, building and machinery - it was found that the assessee sold only factory land, factory building alongwith borewell was sold - the assessee sold for a composite consideration factory land on which no depreciation was claimed and allowed, alongwith factory building and borewell on which depreciation was claimed and allowed to the assessee in earlier years - The gain which the assessee derived on sale of factory land is therefore, to be treated as long term capital gains and the profit which the assessee derived on sale of factory building and borewell is to be treated as short term capital gain in view of special provisions contained in section 50 of the Act – thus, consideration received should be bifurcated in respect of each of the assets on reasonable basis - the Assessing Officer was not justified in treating the entire capital gains as short term capital gains nor the CIT(A) was justified in treating the entire capital gains as long term capital gains as claimed by the assessee – the order set aside and the matter remitted back to the AO for recomputation of the capital gains – Decided in favour of Revenue.
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