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2017 (12) TMI 599 - AT - Income TaxGain on sale of land/factory shed - Revenue contends that the original factory shed never formed part of the block of asset as no depreciation has been admittedly claimed on the factory shed in transfer nor has been allowed - section 50 Applicability - Held that:- It is an admitted position that the assessee has never claimed any depreciation on the asset under transfer. Therefore, the very premise for claiming the same to be part of block of asset for the purpose of s.50 is a damp squib. Secondly, the benefit of section 50 is available only when the depreciation has been allowed on the asset under transfer. It is an admitted position that no such depreciation has been either claimed or allowed on factory shed in transfer. The assets sold is thus not a depreciable asset in so far as provisions of s.50 is concerned. Admittedly, assessee has claimed indexation benefit as per its submission before the CIT(A). Thus, the asset in transfer was also not understood to be a Short Term Capital Asset as contemplated under s.50 of the Act by the assessee himself. Therefore, we do not, in totality, see any substance in the plea of the assessee. A reading of the order of the CIT(A) shows that action of the CIT(A) is in confirmity with law and does not call for any modification. - Decided against assessee.
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