2018 (10) TMI 928

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.... This appeal filed by Revenue is directed against the order of the CIT(A)-33, Mumbai dated 03.08.2016 and it relates to A.Y. 2012-13. 2. The only issue raised by the Revenue is against the order of the CIT(A) holding that whether deduction under Section 54F of the Income Tax Act, 1961 (hereinafter "the Act") is allowable on capital gain arising on transfer of depreciable asset without appreciatin....

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....,49,944/- has resulted. It was claimed by the assessee as exempt under Section 54F of the Act by investing the gain in new house property to the tune of Rs. 1,44,68,000/-. The AO denied exemption under Section 54 F and added the same on the ground that capital gain resulting from sale of depreciable assets under Section 50 of the Act is short term capital gain and therefore no exemption of the sam....

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....ereafter, Hon'ble Jurisdictional High Court has ruled that even in such circumstances, the benefit of sec. 54E of the Act will be available to the assessee. In the instant case too, the appellant has claimed benefit U/s 54F to make himself eligible for such benefit. 7.6 In the light of the discussion made in the preceding paragraphs and respectfully following the decision of the Hon'ble....

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....155 Taxman 855 has held that the legal fiction created in Section 50 is to deem capital gain as short term capital gain and not to deem an asset as short term capital asset and therefore it cannot be said that Section 50 converts long term capital asset into short term capital asset and therefore exemption under Section 54F of the Act is available for depreciable assets as Section 54F does not mak....