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2016 (6) TMI 968 - ITAT PUNEDisallowance of loss claimed by the assessee on sale of assets - sale of assets was partly made to one of the sister concerns i.e. concern in which one of the partners had more than 33% share - business shut down - Held that:- There are two aspects to the claim of loss by the assessee on sale of its assets. First of all, all these assets were used in chemical industry carried on by the assessee and had its wear and tear. Where the plant has been closed down by the assessee, the whole plant & machinery which was part of fixed assets owned by the assessee and was classified in the block of assets as plant & machinery had been disposed of by the assessee, partly, the assets have been sold to the sister concern and partly to the others. The first aspect of the issue is the sale price of assets which was received by the assessee which has been declared under section 50 of the Act. We find no merit in the orders of authorities below in not accepting the sale value shown by the assessee in the absence of any evidence found to the contrary that the sale value shown by the assessee in its books of account was understated and not correct. The said sale value cannot be disturbed. Further, the assessee has sold the total plant & machinery and while computing income / loss under section 50 of the Act, since each asset under the head plant & machinery forms part of block of assets, the WDV of the whole block is to be considered for computing short term capital loss in the hands of assessee. In this regard, we find no merit in the objections of Assessing Officer that where the assessee has failed to give break up of WDV of assets sold, the said claim cannot be allowed to the assessee. Reversing the order of CIT(A), we direct the Assessing Officer to allow the short term capital loss of ₹ 8,03,896/- in the hands of assessee. - Decided in favour of assessee
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