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2020 (5) TMI 256 - AT - Income TaxApplicable rate of taxation to Long Term Capital Asset - Capital Asset which is business asset, where depreciation is claimed - Short Term Capital Gain computed u/s 50 as per AO - AO taxed it at 30% as against 20% claimed by the assessee - HELD THAT:- As decided in M/S. VELVET HOLDINGS PVT. LTD [2017 (7) TMI 1355 - BOMBAY HIGH COURT] deeming fiction attached to section 50 of the Income-tax Act has to be restricted only for the method of computing the capital gain and cannot be read into while considering the case for non-charge-ability of capital gain - assessee is entitled to deduction u/s 54E in respect of the capital gain arising on the transfer of a capital asset on which depreciation has been allowed and which is deemed as short-term capital gain u/s 50 - See case of CIT vs. ACE Builders Pvt. Ltd. [2005 (3) TMI 36 - BOMBAY HIGH COURT] as approved by the Apex Court in the case of CIT, Panji vs. V.S.Dempo Company Ltd. [2016 (10) TMI 62 - SUPREME COURT]. As the issue raised in the present appeal is already covered in the favour of assessee.
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