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2018 (10) TMI 928 - AT - Income TaxDeduction u/s 54F - capital gain arising on transfer of depreciable asset - whether the capital gain resulting from sale of depreciable assets is short term capital gain or long term capital gain for the purpose of exemption under Section 54F towards investment in new house - double deduction - Held that:- In the case of CIT vs. ACE Builders (P.) Ltd. [2005 (3) TMI 36 - BOMBAY HIGH COURT] has held that the legal fiction created in Section 50 is to deem capital gain as short term capital gain and not to deem an asset as short term capital asset and therefore it cannot be said that Section 50 converts long term capital asset into short term capital asset and therefore exemption under Section 54F is available for depreciable assets as Section 54F does not make any distinction between depreciable assets and non depreciable asset. CIT(A) also considered and followed the said decision of the Hon'ble Jurisdictional High Court in deciding the issue in favour of the assessee. Capital gain arising from depreciable assets is long term capital gain for the purpose of claiming exemption under Section 54F/54E of the Act. - Decided against revenue
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