2006 (2) TMI 93

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..... inst the order of the Income-tax Appellate Tribunal in I.T.A. No.236/Mds/92 dated June 16, 2005. The brief facts of the case are stated as follows: The assessee owned 20,365 sq.ft. of land in Bangalore with an equivalent built up area and the same was treated as business asset and claimed depreciation. The assessee sold the property and claimed the gains arising therefrom as a long-term capital .....

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..... ed to the case of the assessee. The said order was also confirmed by the Income-tax Appellate Tribunal on the appeal preferred by the Revenue. Hence, the above appeal. Learned counsel for the appellant, under the facts and circumstances of the case, raises the following substantial question of law. "Whether on the facts and circumstances of the case, the Tribunal was right in holding that the ca .....

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..... ved or accruing as a result of the transfer of any other capital asset falling within the block of assets during the previous year, exceeds the aggregate of the following amounts, namely: (i) expenditure incurred wholly and exclusively in connection with such transfer or transfers; (ii) the written down value of the block of assets at the beginning of the previous year; and (iii) the actual cos .....

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..... in Asst. CIT v. Raka Food Products [2005] 277 ITR 261, interpreting the scope and applicability of section 50 of the Act in a transaction relating to the land and building, of course along with machinery therein, treated the said transaction as a long-term capital gains and held as follows: "Land is not a depreciable asset. Section 50 of the Act deals only with transfer of depreciable assets. On .....

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..... sioner 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. Finding no error in the order of the authorities below, the appeal stands dismissed.
Case laws, .....

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