Case Law Details
Brief of the Case
ITAT Mumbai held In the case of DCIT vs. J.B. Eng. Works that that the assessee had transferred independent interests in two different assets and therefore the Capital Gains arising on the assignment of leasehold interest in the land being a capital asset was rightly offered for tax as Long Term Capital Gains and the consideration attributable to the transfer of the building was rightly offered for tax as Short Term Capital Gains u/s 50. No interference is called for therein and therefore same are upheld.
Facts of the Case
Addition on account of sale of land
During the course of assessment proceedings it wasfound by the AO that main source of income of the assessee during the year was on account of sale of factory building located at Andheri (E), Mumbai. This amount was credited to the P & L Account. However, in the computation of income filed along with return of income, the assessee showed the income as Long Term Capital Gains and offered it for taxation. The Capital Gain was shown to have arisen from sale of land. The sale consideration was declared at Rs.1,50,00,000/- and the entire amount was offered as Long Term Capital Gains.
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