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2017 (9) TMI 240 - AT - Income TaxDetermination of Short term Capital gains u/s 50 - Sale of entire business with all assets - appropriation of sales consideration towards one block of Buildings or all blocks including furniture & fixtures - class of assets - Scope of assets falling in the same class of assets under section 2(11) - Held that:- In the instant case, on going through the order of learned CIT (A), it is observed that he has failed to appreciate the fact that section 2(11) specifies as only two class of assets i.e. tangible and intangible assets and within these two classes of assets, assets having same rate of depreciation are prescribed and they fall within the same block. CIT (A) has completely misunderstood and misconceived the aforesaid provisions of the Act and has wrongly interpreted that two assets falling within two different classes can never constitute a single “block of assets” even though they may be eligible for depreciation at the same rate. Therefore , addition of ₹ 77,81,594/- so sustained by Id. CIT (A) is wholly unwarranted. - Decided in favor of assessee. Disallowance u/s 14A read with rule 8D - Held that:- The said disallowance is unwarranted on the facts of the instant case, as the same was so made by AO without recording a proper satisfaction with regards to the books of accounts of the assessee and in deleting the said disallowance of ₹ 1,21, 986/-. My aforesaid view is fortified by the judgment of the Hon'ble Supreme Court in the case of Godrej Boyce & Manufactoring Co. Ltd. CIT [2017 (5) TMI 403 - SUPREME COURT OF INDIA] .
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