2020 (6) TMI 368

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....e. 2. Rs. 16,34,34,975/- (Treated as income from Short Term Capital Gains). The learned DCIT erred in treating the profit on sale of asset (vacant land) of Rs. 16,34,34,975/- as Short Term Capital Gains holding that it formed part of block of assets in companies' books; The learned CIT(A) erred in confirming the assessment holding- "from the description of the property given in both the partnership deed and the sale deed, it is apparent that the property in question was not simply a vacant site as claimed by the appellant but had a building constructed on it and consequently, it was included in the Schedule of Assets under Land and Building. Therefore the DCIT was correct in applying the provisions of Section 50 of the Act, which ....

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....in is arising from is a long term capital gain and the provisions of Sec 50 of the Income Tax Act, 1961 dealing with depreciable assets has been wrongly applied in the instant case. 3. In the course of hearing, it was submitted by the ld. AR of the assessee that the only dispute in the present case is regarding this aspect as to whether the profit on sale of immovable property is liable to tax as short term capital gains 'STCG' or long term capital gains 'LTCG'. The relevant facts in brief as noted by the AO in the assessment order are that there was sale of an immovable property for Rs. 16.90 Crores for which the assessee submitted copy of sale deed before the AO. It was further noted in para-4 of the assessment order that the said asset ....