https://www.taxtmi.com/caselaws?id=757911 The Gujarat HC ruled in favor of the assessee regarding depreciation claims on glow sign boards and oxygen gas cylinders. The AO had rejected depreciation claims, arguing transactions on the last day of accounting year don't constitute business and glow sign boards are advertising material, not plant. The ITAT held sale proceeds of depreciated assets should be taxed as short term capital gains under Section 50. However, the HC disagreed, following Nectar Beverages SC precedent, and held that assets purchased before certain dates don't form part of block assets, making sale proceeds not taxable as balancing charge under Section 50. The appeals were disposed of favoring the assessee. en-us Wed, 28 Aug 2024 00:00:00 +0530 Tue, 03 Sep 2024 14:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757911 The Gujarat HC ruled in favor of the assessee regarding depreciation claims on glow sign boards and oxygen gas cylinders. The AO had rejected depreciation claims, arguing transactions on the last day of accounting year don't constitute business and glow sign boards are advertising material, not plant. The ITAT held sale proceeds of depreciated assets should be taxed as short term capital gains under Section 50. However, the HC disagreed, following Nectar Beverages SC precedent, and held that assets purchased before certain dates don't form part of block assets, making sale proceeds not taxable as balancing charge under Section 50. The appeals were disposed of favoring the assessee. Case-Laws Income Tax Wed, 28 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757911