TMI Blog2014 (12) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... either in the definition of "transfer" or in the charging section and therefore the assessment as capital gains liable to tax arising out of the compensation amount received under the insurance on account of damage was not valid in law – u/s 50 it has been provided that where the capital asset is an asset in respect of which a deduction on account of depreciation u/s 32(1) (i) has been obtained by the assessee in any previous year, the provisions of sections 48 and 49 shall apply subject to the modification that the written down value as defined in clause (6) of section 43 of the asset as adjusted shall be taken as the cost of acquisition of the asset. Applicability of provisions of section 41(2) – Held that:- The Tribunal committed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessee, thereafter filed revised return on 27.11.2000 and disclosed revised income at ₹ 2,23,68,340/-. The Assessing Officer assessed the total income of the assessee at ₹ 56939830/-. The assessee filed appeal before the CIT(A) challenging the same. The CIT(A) partly allowed the appeal filed by the assessee but sustained the addition made by the AO though on different ground. The assessee further appealed before the Tribunal and the Tribunal confirmed the addition made by the CIT(A). 4. Mr. S.N. Soparkar, learned Senior Advocate appearing for the appellant assessee has drawn the attention of this Court to the circular no. 772 dated 23.12.1998 and the provisions of Sections 32, 41(2) and 50. He submitted that the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, used or enjoyed by anyone. With the destruction of the asset, the rights of the assessee in that asset also would be destroyed. The destruction of such rights in an asset consequent upon the assets ceasing to exist was a situation which was not contemplated either in the definition of transfer or in the charging section and therefore the assessment as capital gains liable to tax arising out of the compensation amount received under the insurance on account of damage was not valid in law. 6.1 In fact the Act inserted section 50A to provide for the working of the cost of acquisition for the purposes of computation of capital gains in respect of such assets. It has been provided that where the capital asset is an asset in respect of w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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