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2018 (10) TMI 370 - HC - Income TaxCapital gain - STCG or LTCG - Sale of property on which depreciation has been claimed - Land sold after demolition of building on such land - whether the sale of land/property was correctly subjected to capital gains taxation in terms of Section 50 as against the computation reported as per Section 45 read with Section 48 - Held that:- AO is not correct in stating that the land sold is a short capital asset, on which, depreciation had been claimed. An identical issue came up for consideration before the Division Bench of this Court in the case of CIT Vs. Union Co. (Motors) Ltd. [2006 (2) TMI 93 - MADRAS HIGH COURT ] as held in the instant case, the fact remains that the purchaser had applied for demolition of the building and also demolished the building, which was taken into consideration by the Commissioner and the Tribunal, while arriving at a conclusion that Section 50 of the Act is not attracted, as, under the facts and circumstances of the case, it is clear that the sale consideration made by the purchaser is only for the land, since the building had no value and therefore, got demolished - Decided in favour of assessee Loss of sale of shares - AO found that the assessee had not filed proper details- Held that:- in the absence of any evidence produced by the assessee to indicate that there were, indeed, transactions of purchase and sales of shares by the assessee, the Assessing Officer rejected the contention of the assessee and held that the purported loss of sale of shares is a speculation loss and cannot be set off against other gains except gains, if any, on any other speculation business as envisaged under Sub-Section (1) of Section 73 of the Act. Thus, we find that the reasons assigned by the Assessing Officer as confirmed by the CIT (A) as well as the Tribunal are perfectly legal, valid and do not call for any interference. Accordingly, substantial question of law No.2 is answered in favour of the Revenue and against the assessee.
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