Case Law Details
ITO Vs Smt. Jaya Deepak Bhavnani (ITAT Mumbai)
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 make any distinction between depreciable assets and non depreciable asset.
FULL TEXT OF THE ITAT JUDGMENT
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 appreciating the fact that same is taxable as short term capital gain under Section 50 of the Act and also challenged the order of CIT(A) on the ground that allowing deduction under Section 54F of the Act would amount to double deduction once as depreciation and subsequently under Section 54F of the Act.
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