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2016 (2) TMI 804 - HC - Income TaxSet off of loss from assets on which depreciation claimed - Capital gain arising from transfer of depreciable assets - whether was liable to be set off against brought forward Long Term Capital Loss - Held that:- We find that the issue stands concluded by the decision of this Court in ACE Builders (P) Ltd (2005 (3) TMI 36 - BOMBAY High Court) in favour of the Respondent-Assessee. Moreover, the impugned order relies upon the order of the Tribunal in Komac Investments and Finance Pvt Ltd (2011 (4) TMI 705 - ITAT MUMBAI ) to dismiss the Revenue's appeal before it. The deeming fiction under Section 50 is restricted only to the mode of computation of capital gains contained in Sections 48 and 49 of the Act. It does not change the character of the capital gain from that of being a long term capital gain into a short term capital gain for purpose other than Section 50 of the Act. Thus, the respondent - assessee was entitled to claim set off as the amount of ₹ 7.12 Crores arising out of sale of depreciable assets which are admittedly on sale of assets held for a period to which long term capital gain apply. Thus for purposes of Section 74 of the Act, the deemed short term capital gain continues to be long term capital gain. Moreover, it appears that the Revenue has accepted the decision the Tribunal in Komac Investments and Finance Pvt Ltd (supra), as our attention has not been drawn to any appeal being filed from that order. - Decided in favour of Respondent-assessee.
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