Deeming of short-term capital gains where transfers from a depreciable block exceed transfer expenses, opening WDV and acquisition cost.
Section 74 prescribes that when consideration received or accruing in a tax year for transfers of one or more assets in a depreciable block exceeds, after deducting transfer-related expenditure, the opening written-down value of the block and the actual cost of additions during the year, the excess is deemed to be capital gains arising from the transfer of short-term capital assets; if the entire block is transferred in the year, cost of acquisition is the opening WDV plus costs of additions and resulting receipts are similarly deemed short-term capital gains.