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2016 (12) TMI 551 - AT - Income TaxClaim of depreciation of assets of Silvasa unit - Held that:- Claim was declined by the Tribunal in assesse’s own case by following the decision of Hon’ble Bombay High Court in the case of Scope Industries Pvt. Ltd., [2006 (10) TMI 75 - HIGH COURT, BOMBAY ]. Respectfully following the order of the Tribunal in preceding years, we confirm the action of the lower authorities for decline of claim of depreciation on assets of Silvasa unit - Decided against assessee Applicability of Section 50C - Held that:- This issue of determination of full value of consideration for computation of capital gains in respect of properties sold need to be set aside and restored to the file of the AO for fresh adjudication of the issue on merits after consideration of the valuation report of the DVO and also objections of the assessee . The AO shall giver proper and adequate opportunity of being heard to the assessee in accordance with principles of natural justice and the assessee shall be allowed to file all necessary evidences and material in support of its contentions including objections to the DVO valuation report which shall be evaluated on merits to compute capital gains payable by the assessee in accordance with provisions and scheme of the Act. Long term capital gains earned on sale of properties - tax rate applicable as per the assessee is concessional tax rate as applicable to long term capital gains@20% as provided u/s 112 - Held that:- We are of considered opinion that Section 50 of the Act is a provision with deeming fiction whereby for the purposes of computing capital gains in the case of depreciable assets , the gains arising from the transfer of the said assets has to be treated as capital gains arising from transfer of short term capital assets u/s 50 of the Act, but for the purpose of applicability of tax rate it has to be treated as long term capital gain if held for more than three years and brought to tax at rate@20% as stipulated u/s 112 of the Act. This proposition is supported by the order of co-ordinate benches of the Tribunal in the case of Smita Conductors Limited v. DCIT [2013 (9) TMI 1056 - ITAT MUMBAI ] Transfer pricing adjustment - addition with respect to Royalty Payment made u/s 92CA - Held that:- The facts and circumstances during the year under consideration are same as in the earlier years. Respectfully following the decision of the Tribunal in preceding years, as stated above, we do not find any infirmity in the order of CIT(A) for deleting the disallowance of royalty payment as there was no case of any excess payment made of royalty by assessee than approved by SIA to justify its disallowance by way of TP adjustment Disallowance of expenditure on advertisement films deleted
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