Exemption of capital gains on industrial relocation when proceeds are reinvested in qualifying new assets in non-urban areas. Exemption of capital gains applies when capital assets of an industrial undertaking are transferred in consequence of shifting from an urban area to a non-urban area and the assessee reinvests proceeds in qualifying new assets (machinery, plant, building, land, shifting of establishment, or scheme-specified expenditures) within specified time limits; excess gain over reinvestment is charged as income, while reinvested gain is exempt but reduces the cost of the new asset for short-term transfer computations, and unutilised amounts must be deposited under a notified scheme and may become taxable if not applied.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Exemption of capital gains on industrial relocation when proceeds are reinvested in qualifying new assets in non-urban areas.
Exemption of capital gains applies when capital assets of an industrial undertaking are transferred in consequence of shifting from an urban area to a non-urban area and the assessee reinvests proceeds in qualifying new assets (machinery, plant, building, land, shifting of establishment, or scheme-specified expenditures) within specified time limits; excess gain over reinvestment is charged as income, while reinvested gain is exempt but reduces the cost of the new asset for short-term transfer computations, and unutilised amounts must be deposited under a notified scheme and may become taxable if not applied.
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