TMI Blog2014 (6) TMI 1043X X X X Extracts X X X X X X X X Extracts X X X X ..... held that if the flat is held for more than three years the tax rate has to be applied as provided in section 112 of the IT Act applicable in respect of capital gain arising from transfer of long term capital asset. We, therefore, held that, for the purpose of computation of capital gain, the flat has to be treated as short term capital gain u/s 50 of the IT Act, but for the purpose of applicability of tax rate it has to be treated as long term capital gain if held for more than three years. - Decided in favour of assessee. - ITA No. 6810/Mum/2008 - - - Dated:- 26-6-2014 - S/Sh. D. Manmohan, Vice-President Rajendra, Accountant Member For the Assessee : Shri Vijay Mehta For the Revenue : Shri Dr. P. Denial Order u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Custodian had sold assessee s property at Gopal Mansion for ₹ 6.61 Crores, that the assessee had accounted for ₹ 6.41 Crores in the computation of income with regard to the abovementioned property, that assessee had not showed the advanced receipt of ₹ 20 lakhs in the computation of income, that assessee had worked out the indexation on the purchase cost including stamp duty and registration charges of ₹ 5.34 Crores ,that sale-deed was executed in the AY 1994-95, that for the first time in 1993-94 premises was shown for as company s fixed asset, that it had claimed depreciation from the AY.s. 1994-95 to AY.1999- 2000,that it was allowed depreciation in the year 1994-95 and 1999-2000.Considering the above Fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STCG as per the provisions of the Act. But while calculating the tax liability of the assessee as per the provisions of section 112 of the Act the asset has to be taken as long term asset, if same is hold for more than three years by the assessee in the case of Smita Conductors Ltd. (supra) similar issue had arisen before the Tribunal and it had discussed the facts and issue as under: 2.We first take up the dispute relating to computation of capital gain u/s 50 r.w,s 50C of the Income tax Act and the application of tax rate as raised in the additional ground. The assessee during the relevant year had sold a flat at Khar for ₹ 35,00,000/-.Since the flat was a business asset and had been shown as part of the block of assets, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Builders P. Ltd. (Supra) in which it has been held that for the purpose of other provisions of the Act such as section 54EC the capital gain has to be treated as long term capital gain, if the asset is held for more than three years. The same view has been taken by the Mumbai bench of Tribunal in case of Manali Investments Vs. Assistant Commissioner of Income Tax(139 TTJ 411) in which it has been held that the prescriptions of section 50 are to be extended only to the stage of computation of capital gain and, therefore, capital gain resulting from transfer of depreciable asset which was held for more than three years would retain the character of long term capital gain for the purpose of all other provisions of the Act. In this case the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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