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2019 (6) TMI 1255 - AT - Income TaxCapital gain arising out of sale of office premises - LTCG OR STCG - characterization of asset - not claimed depreciation under Income tax Act though claimed under companies Act - used the office as registered office - mandatory nature of depreciation - HELD THAT:- As decided in SAKTHI METAL DEPOT VERSUS ITO [2004 (11) TMI 507 - ITAT COCHIN] character of the asset does not change only for the reason that the flat was used as a business asset/depreciable asset in the past. A long-term capital asset even though used as a depreciable asset in the past still could be a long-term capital asset for the purpose of taxation, if the property was not treated as a depreciable asset at the time of sale. It is always possible that a particular asset can be a personal asset for some time and a business asset for some other time. It entirely depends upon the intention of the owners of the property in which way it should be used. The assessee’s gain is arising out of sale of office premises is to be assessed as long term capital gain and consequential relief is to be allowed. Allowance of cost of improvement claimed - assessee is unable to file any evidence before the lower authorities as the transaction of the year 2003-04 and it is 16-year-old matter - HELD THAT:- As noted assessee had incurred various expenses on improvement of the 4 galas in the nature of certain architectural changes, during the A.Y. 2004-05 amounting to ₹ 46,45,700/- which was duly explained from the Schedule of Fixed Assets in the Audited Balance Sheet of the company for FY 2003-04. During the course of assessment proceedings, the AO had asked the AR of the assessee firm to produce various documentary evidences in order to substantiate the cost of acquisition as claimed. We direct the assessee to produce all the relevant evidences before AO and AO will consider the relevant accounts of the assessee including schedule of fixed assets from the balance sheet and will decide the issue afresh. Hence, this issue is set aside to the file of the AO. - Appeal of assessee is partly allowed.
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