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2014 (6) TMI 1043 - AT - Income TaxTax on capital gain - sale of a capital asset as held as a business asset and depreciation was claimed on it - charged at 20% OR at the normal tax rate - computation of capital gain u/s 50 r.w,s 50C - HELD THAT:- We are of the opinion that whenever depreciation is claimed on and assessed it has to be treated as STCG as per the provisions of the Act. But while calculating the tax liability of the assessee as per the provisions of section 112 of the Act the asset has to be taken as long term asset, if same is hold for more than three years by the assessee in the case of Smita Conductors Ltd. [2013 (9) TMI 1056 - ITAT MUMBAI] held that if the flat is held for more than three years the tax rate has to be applied as provided in section 112 of the IT Act applicable in respect of capital gain arising from transfer of long term capital asset. We, therefore, held that, for the purpose of computation of capital gain, the flat has to be treated as short term capital gain u/s 50 of the IT 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. - Decided in favour of assessee.
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