TaxTMI 
TaxTMI 
2017 (5) TMI 781
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....d 7 are against the Pr. CIT's action of not dealing with the Assessee's submissions that it is eligible for exemption under section 54 EC of the Act in respect of short term capital gains made under section 50 where the assets were held for more than three years. 3. In its order u/s.263, CIT observed that while computing the short term capital loss on residential property, the value of sale consideration i.e. Rs. 30 lakhs was reduced from the WDV of residential property which was Rs. 74,87,519 and in this manner the loss of Rs. 44,87,519/- was arrived at by the assessee. It is seen from sale deed that the residential property was purchased on 16.11.2003 for Rs. 1,04,47,003/- and sold during the year to Mrs. Alka B Birewar, the ma....
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.... thereof, the reference may be made to the following pages of the Paperbook. Page No. 1 : In the Computation of Total Income, the assessee has added back to the Net Profit as per the Profit & Loss A/ c, loss on sale of assets amounting to Rs. 65,77,156/- as per books. The said loss is reflected under Schedule "Q" to the Profit & Loss A/ c which is on the Page 10 of the Paperbook. 7. The assessee has reduced from the Net profit as per the Profit & Loss A/ c profit amounting to Rs. 1,09,00,343/- as The said profit is reflected under Schedule "N" the Profit & Loss A/ c which is on Page 9 of the Paperbook. The above items have been separately shown on Page 2 of the assessment order in the Computation of Total Income made by the AO, which ....
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....held that section 50 C is applicable to the depreciable assets. 10. As per learned AR, the issue with regard to applicability of section 54 EC to capital gain computed under section 50 in respect of long term capital assets is concluded by the Bombay High Court decision dated 7th March, 2005 in the case of ACE Builders Pvt. Ltd. 281 ITR 210 holding that benefit under section 54 EC can be claimed in respect of capital gain computed under section 50 where the assets are long term. The said decision has been approved by the Supreme Court in the case of CIT V/s. V. S. Dempo Co. Ltd. 387 ITR 354. He further contended that the issue with regard to applicability of Section 50 C to the depreciable assets remains debatable till the issue is final....
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....ontentions and carefully gone through the orders of the authorities below. We had also deliberated on the judicial pronouncements referred by CIT in his order u/s.263 as well as cited by learned AR and DR during the course of hearing before us. 13. From the record, we found that the assessee company has sold the property and shown sale consideration at Rs. 30 lakh whereas the stamp duty value of the property Rs. 1,42,83,000/- and accordingly the Assessee arrived at loss of Rs. 44,87,519/- on sale of the residential property. While passing the order u/s.143(3), the AO has not uttered a single word with regard to applicability of provisions of Section 50C in respect of building sold by assessee to its Managing Director. The provisions of t....
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.... to the decision of Calcutta High Court as relied by learned AR in case of Panchiram Nahata, we found that appeal was dismissed on the ground of tax effect and they have not considered the merits of the case, therefore, it is wrong to hold that issue is covered by the decision of Calcutta High Court. In the instant case, the Assessing Officer has erred by not taking the sale value of the property as adopted by the Stamp Duty Authority .i.e sale value as per Section 50C of the I T Act. Further, the Hon'ble ITAT in case of Rallis India Ltd., vs. Addl. CIT (IT Appeal No.2464 (Mum) of 2010) also held that the applicability of provisions of Section 50C in the case of depreciable asset is now squarely covered by the ITAT Mumbai Special Bench ....