2015 (3) TMI 52

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....d on facts in upholding the estimated addition of Rs. 25,29,412 on account of Short-Term capital gain u/s 50 on sale of factory building and structure constructed on the lease hold land made by the Assessing Officer on the basis of payment of additional stamp duty of Rs. 1,50,500 without properly appreciating the facts of the appellant. 2. He has erred in law and on facts in upholding the addition of short term capital gain without appreciating the facts that the provisions of section 50C were not applicable to the facts of the appellant who has sold depreciable asset constructed on lease hold land. 3. On the facts and in law no additional addition of Rs. 25,29,412 toward short term capital gain on the basis of payment of additional stamp....

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....und in this appeal is against the confirmation of the estimated addition of Rs. 25,29,412/- on account of short-term capital gain by invoking the provisions of section 50C of the Income Tax Act. The ld.counsel for the assessee submitted that the AO was not justified in adopting the value of the property as per the Sub-Registrar, SRO-Ahmedabad-5. He submitted that even the ld.CIT(A) has failed to take note of the fact that the building being a depreciable asset and WDV of the same was reflected in the balance-sheet of the earlier years as well as in the year in question. Therefore, the capital gain will be calculated as per the provisions of section 50 and not as per provisions of Section 48 and 49 of the Income-tax Act, 1961. Section 50C ap....

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....e is sale of building on which depreciation was claimed, section 50 is applicable and computation is to be made under section 48 subject to modification mentioned in section 50. However for sale of building, the sale consideration for the purpose of section 48 is to be replaced by value adopted by stamp valuation authority under section 50C. Therefore it can be concluded that section 50 is not in exclusion of all other sections. Except section 2(42A), all other sections are applicable to section 50. This section was excluded because it defines short-term capital asset which is held for less than three years. However block of asset can be more than three years and therefore to treat the same as short-term capital gain, this exception was pro....