TMI Blog2018 (10) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 - ITA No. 6444/Mum/2016 - - - Dated:- 12-10-2018 - Shri Rajesh Kumar, Accountant Member And Shri Amarjit Singh, Judicial Member For The Appellant : Rajeev Gubgotra For The Respondent : Shri Vimal Punamiya ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round that capital gain resulting from sale of depreciable assets under Section 50 of the Act is short term capital gain and therefore no exemption of the same can be claimed under Section 54F of the Act. In the appellate proceedings the learned CIT(A) allowed the appeal of the assessee after considering the contentions and submissions by holding and observing as under: - 7.5 From the above, it is clear that the main question taken up by the Hon'ble High Court was as to whether the deeming fiction created under section 50 is restricted to section 50 only or it can be extended to section 54E of the Income-tax Act as well. The Hon'ble High Court in the aforesaid case has clearly held that where the long-term capital asset has a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital 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 of the Act is available for depreciable assets as Section 54F does not make any distinction between depreciable assets and non depreciable asset. The learned 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. Similarly the case of the assessee is also squarely covered by various decisions of various judicial forums such as; (i) CIT vs. F.S. Dempo Company Ltd. (2016) 74 taxmann.com 15 (SC), (ii) Smita Condu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
