Profit - short term capital gain

[GYAN JAIN]

My assessee is P ltd co , having Hotel building in books charged deprecition every year , sold the hotel building for Rs 10,00,000.00 but the value as per section 50 c comes to Rs 1250000.00 , and WDv in books was Rs 775000.00 whethr the peofit is Shrot term capital gain or otherwise , give me applicable cases

AI Summary

Clarification on Short-Term Capital Gain: Section 50C Stamp Duty Irrelevance in Building Sale; Depreciation and Land Costs Key Factors A company, P Ltd, sold a hotel building for Rs 10,00,000, with a book value of Rs 7,75,000. The stamp duty value under Section 50C is Rs 12,50,000. The query concerns whether this constitutes a short-term capital gain. The response highlights the need for detailed facts, including whether depreciation was correctly applied under the Income Tax Act and whether land costs are included. It clarifies that Section 50 applies to depreciable assets, and Section 50C pertains only to Section 48, thus the stamp valuation is irrelevant for the building. Capital gains on land are not subject to Section 50.