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2012 (4) TMI 374 - HC - Income TaxPlant and machinery (not in use) acquired - Tribunal treated it as long term capital assets for the assessment year 2006-07 as it was sold in the financial year 2005-06 – revenue appeal that plant and machinery (not in use) would be covered by the expression 'block of assets' - Held that:- the assessee has shown two block of assets separately i.e. one on which depreciation was claimed @ 25% and the other on which no depreciation was claimed in any of the previous years, the two assets are different from each other - the assessee having not claimed any depreciation on the same cannot be burdened with the provisions of Section 50 - in the absence of any depreciation being allowed to the assessee in any of the previous years on the said plant and machinery (not in use),the gain arising on the transfer of the said asset is to be treated as long term capital gain – directed in adopting the indexed cost of acquisition in determining the income from long term capital gain on sale of plant and machinery (not in use) – against revenue.
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