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2018 (1) TMI 1081 - AT - Income TaxCapital gain on transfer of the depreciable long term capital assets - rectification of mistake - Tax income from STCG @ 20% instead of regular tax rate - whether the rate of 20% is applicable to the gains earned on transfer of the depreciable long term capital assets within the meaning of section 50 of the Act? - Held that:- The applicable rate of tax on the deemed short term capital gains generated out of depreciable long term capital assets is the matter of debate. The judgment of jurisdictional High Court in the case of Ace Builders Pvt. Ltd. (2005 (3) TMI 36 - BOMBAY High Court ) is on the facts of reinvestment of such long term capital assets-linked deemed short term capital gains; whereas in the assessee’s case, it is not a case of reinvestment. This makes the difference. Therefore, we are of the opinion that the order of CIT(A) should be confirmed on the ground of debatability linked to the jurisdiction of AO u/s.154 of the Act. As we have considered the arguments of the Ld. Counsel for the assessee that the CIT(A) allowed the appeal of the assessee basing on the arguments that revolve around the” debatability” on this issue. Explaining the same, Ld. Counsel submitted that, for the rate purposes, the applicable tax rate on the capital gains relatable to sale of transfer of the depreciable long term capital assets and which are not reinvested u/s.54E of the Act constitute long term capital gains or short term capital gains is a matter of debate. On seeing the debatability, CIT(A) granted relief. On considering the same, we are of the opinion that the AO invalidly invoked the provisions of section 154 of the Act in this case. Accordingly, the relevant ground raised by the Revenue are dismissed. Suppressed production of TMT bars - CIT-A deleting the addition - Held that:- CIT(A) has considered all the aspects which led the assessee to disclose 982.82 units per MT which include that the assessee maintained the records properly and the books of accounts have been audited, no method for recorded day-to-day electricity consumption, declaration of 7% burning loss by various steel manufacturing units in Jalna & surrounding area, reports of Excise Department that for 1 MT of MS Ingots/Billets, 1026 electricity units are required, etc., and the decision of Hon’ble CE&S Tribunal and the Pune Bench of the Tribunal in the case of SRJ Peety Steels Pvt. Ltd. (2015 (1) TMI 1228 - ITAT PUNE) etc. Nothing incriminating material has been brought by the Revenue authorities to take a contrary view against the findings of CIT(A). We therefore find the order of the CIT(A) to be a reasoned one and accordingly affirm the same
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