TaxTMI 
TaxTMI 
2025 (8) TMI 1365
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.....2023. 2. The grounds raised by the assessee are reproduced as under: 1. The appellant prefers the following Appeal against the order dated 31/03/2025 of the Commissioner of Income Tax (Exemptions), Mumbai (hereinafter referred to as "The CIT") passed under section 263 of the Income Tax Act, 1961 ("The Act"). Each of the grounds is in alternative and without prejudice to other. 2. On facts of this case, the CIT was not justified in passing the order under S. 263 of the Act. The CIT failed to appreciate that In this case, the Assessment Unit has only given effect to the clear direction passed in his earlier order dated 19/03/2022 passed under S. 263 of the Income tax Act, 1961. He failed to appreciate that an order givin....
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....not in respect of any order passed by the Assessment Unit. The order so passed under S. 263 is thus bad in law, illegal and void ab initio. 3. Briefly stated, facts of the case are that the assessee, an association of computer media dealers, filed its return of income wherein claimed exemption of income u/s 11 of the Income-tax Act, 1961 (in short 'the Act') treating itself as charitable institution and declared Nil total income. During the year under consideration, the assessee sold office premises for sale consideration of Rs. 26,29,833/- and in the return of income filed, said consideration was set apart by the assessee for further application of income invoking section 11(2) of the Act. The case of the assessee was selected for scrut....
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....ation, application as well as benefits of Section 11 and 12 of the Act are not available for the assessee in the AY.2017-18 (b) The immunity under VSVS 2020 is not available to the assessee with regard to the income from the property amounting to Rs. 26,29,833/-. Accordingly, the assessee being a mutual association, this income from sale of property from nonmutual sources may be brought to tax accordingly. Necessary indexation following the computational rules in Chapter V of the Act may be granted as per law. (c) The scope of assessment proceeding pursuant to this order is limited to above issues only and the AO is directed not to travel beyond the scope of this issue. No other findings in the assessment order dated 13/11....
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....Accordingly, he set aside the said order with the direction to pass a speaking order after taking into consideration his direction for examining the taxability of the sale of the depreciable asset amounting to Rs. 26,29,833/- in the light of the section 50 and accordingly charge short term capital gain. 4. Aggrieved with the above finding of the Ld. CIT(E) examining the assessee is in appeal before the Tribunal by way of raising grounds as reproduced above. 4.1 We find that before the Ld. CIT(E), the assessee challenged jurisdiction acquired by the Ld. CIT(E) and also challenged the finding of the Ld. CIT(E) on the law. Before us, the Ld. Counsel for the assessee also submitted that the office premises sold was neither part of the blo....
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....es to exist as such, for the reason that all the assets in that block are transferred during the previous year, the cost of acquisition of the block of assets shall be the written down value of the block of assets at the beginning of the previous year, as increased by the actual cost of any asset falling within that block of assets, acquired by the assessee during the previous year and the income received or accruing as a result of such transfer or transfers shall be deemed to be the capital gains arising from the transfer of short-term capital assets:] ^53 [Provided that in a case where goodwill of a business or profession forms part of a block of asset for the assessment year beginning on the 1st day of April, 2020 and depreciati....
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....t all, may be assessed under the head "Income from Other Sources" and not under the head "Profits and Gains of Business or Profession." 5.1 Learned counsel also submitted that the assessee has never claimed depreciation on the office premises in question, and therefore, the provisions of Section 50 of the Act, which apply to capital gains on the sale of depreciable assets, would have no application. Consequently, the Assessing Officer was under no obligation to inquire into the applicability of Section 50, and the observation of the CIT(E)-that the Assessing Officer failed to make such inquiry-is both unwarranted and misplaced in the facts of the present case. 6. We have heard the rival submissions advanced by the learned counsel for ....