The ITAT held that the revision under section 263 was invalid...

The ITAT held that the revision under section 263 was invalid and quashed the revisional order, restoring the assessment and allowing the assessee's appeal. The Tribunal ruled that the deeming fiction in section 50, which treats gains on transfer of depreciable assets as arising from a short-term capital asset only for computation under section 50, does not alter the asset's character for other provisions; consequently the tax rate prescribed by section 112 (20% plus applicable surcharge) applies to gains on long-term depreciable assets. The AO's acceptance of the assessee's rate claim was upheld as conforming with judicial precedent.