https://www.taxtmi.com/caselaws?id=34091 SC held that Sections 41(1)-(4) operate in distinct spheres and a balancing charge under Section 41(2) cannot be read into Section 41(1). Depreciation recovered on sale is a balancing charge only under Section 41(2). Bottles and crates costing under Rs.5,000 purchased before 31.3.1995 did not form part of the block of assets and profits on their sale were not taxable as a balancing charge nor under Section 50. Bottles and crates purchased after 1.4.1995 formed part of the block and were exigible to capital gains tax under Section 50. Matter remitted to AO to examine any understatement where proceeds were treated as miscellaneous income. en-us Mon, 06 Jul 2009 00:00:00 +0530 Mon, 10 Nov 2025 17:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=34091 SC held that Sections 41(1)-(4) operate in distinct spheres and a balancing charge under Section 41(2) cannot be read into Section 41(1). Depreciation recovered on sale is a balancing charge only under Section 41(2). Bottles and crates costing under Rs.5,000 purchased before 31.3.1995 did not form part of the block of assets and profits on their sale were not taxable as a balancing charge nor under Section 50. Bottles and crates purchased after 1.4.1995 formed part of the block and were exigible to capital gains tax under Section 50. Matter remitted to AO to examine any understatement where proceeds were treated as miscellaneous income. Case-Laws Income Tax Mon, 06 Jul 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=34091