9911796707
TMI Blog2003 (6) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ier years was claimed and allowed to be set off?" To answer the question, the brief facts necessary are--Assam Petroleum Industry is a company. The assessee derived income from house property as well as from his business dealing. The assessment year in question is 1991-92. During the previous year the assessee has received compensation from the Deputy Commissioner, Kamrup, for acquisition of its land and building. The assessee had invested the entire receipt of compensation by purchasing IDBI Bonds and claimed exemption of the capital gain under section 54E of the Income-tax Act, 1961. The claim made by the assessee in regard to land was allowed by the Assessing Officer whereas the claim in regard to building the Assessing Officer was of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital gain and, therefore, the addition made by the Assessing Officer was not sustainable in law. The Commissioner of Income-tax (Appeals) held that the Assessing Officer is not correct in invoking section 50 of the Act for arriving at the conclusion that the assessee has transferred the short-term capital asset. The Assessing Officer was directed to allow the benefits of section 54E of the Act to the assessee. The Revenue was aggrieved by the order passed by the Commissioner of Income-tax (Appeals) and preferred an appeal before the Income-tax Appellate Tribunal, Guwahati Bench, Guwahati. The Tribunal upheld the findings and the view taken by the Commissioner of Income-tax (Appeals) and dismissed the appeal filed by the Revenue. That is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m capital asset. All capital gains on the transfer of the capital asset whether short-term capital asset, or long-term capital asset except otherwise provided, in mentioned sections in section 45 of the Income-tax Act are chargeable to income-tax. How the capital gains shall be computed is laid down under sections 48 and 49 of the Income-tax Act, 1961. The capital gain arising from the transfer of short-term assets under section 48 (as it stands at the relevant time), are wholly assessable to be as ordinary income after deduction as provided under section 48(1)(a) whereas the capital gain arising from the transfer of long-term capital assets are partially assessable as provided under section 48(1)(b), which reads: "48. (1)(b) where the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the full value of such consideration received 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 cost of any asset falling within the block of assets acquired during the previous year, such excess shall be deemed to be the capital gains arising from the transfer of short-term capital assets; (2) where any block of assets ceases to exist as such, for the reason that all the assets in that block are tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer of capital assets not to be charged in certain cases.--(1) Where the capital gain arises from the transfer of a long-term capital asset (the capital asset so transferred being hereafter in this section referred to as the original asset), and the assessee has, within a period of six months after the date of such transfer, invested or deposited the whole or any part of the net consideration in any specified asset (such specified asset being hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,--..." The essential requirements or ingredients to attract the provisions of section 54E are--(i) the capital gains has arise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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