2014 (12) TMI 606

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....pondent assessee had purchased one immovable property in the form of a godown at Bombay for an amount of Rs. 1,22,767/. Depreciation on this property was claimed upto Assessment Year 198485. Thereafter, with effect from Assessment Year 198586 onwards the assessee neither claimed any depreciation nor any such claim was allowed by the revenue in respect of the said property. The contention of the assessee was that the said property had not been used for the purpose of business with effect from Assessment Year 198586 and therefore, the provisions of Section 50 would not be applicable since the property was not included in the block of assets. The assessing Officer, however, rejected the contention and held that the case was covered by section ....

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....r of the Tribunal and submitted that the view taken by the Tribunal is just and proper and no interference is required to be called for by this Court. 5.1. In support of his contention, he relied upon the decision of this Court in the case of Commissioner of Income Tax V. Aditya Medisales Ltd. reported in [2014] 362 ITR 600 (Guj.). 6. We have heard learned advocates appearing for the parties and perused the material on record. While deciding the appeal, the Tribunal in paragraph No.3 has observed as under:-               "3. The CIT(A) held that once the asset in question has not been used for the purposes of business right since asstt. Year 198586 onwards, it would n....

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....ar 198889 onwards in the following circumstances;         (1) Capital asset is a depreciable asset on which depreciation has been allowed under the 1961 Act or 1922 Act.         2. The capital asset forms part of a block of assets.     Now in the instant case the Nagdevi property fulfills the first requirements as above. However, in so far as the second requirement for applying section 50 is concerned, the same is not fulfilled inasmuch as in the Nagdevi property no longer form part of block of assets. Since it was not being used for purposes of business right since Asstt. Year 198586 onwards. The concept of block of assets has been introduced from....