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Sec.54E does not make any distinction between depreciable assets & non-depreciable assets,
Case Law Details
- Case Name
- Income-tax Officer Vs. M/s Polestar Industries (ITAT Ahmedabad)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2007- 2008
- Courts
- All ITAT, ITAT Ahmedabad
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Following the decision of ACE Builders (P) 28 ITR 2000(Bom) and Assam Petroleum Industries Pvt Ltd 262 ITR 58 (Gau). It was held that Section 54E does not make any distinction between the depreciable assets and non-depreciable assets, therefore, the investment u/s 54E is a permissible investment.
With this factual as also legal background, we have heard both the sides. We are of the considered view that the issue as raised by the Revenue Department in the grounds of appeal that whether the capital gain as computed u/s 50 of IT Act qualifies for the exemption if investment is made out of the sa...
I think the ITAT has missed out an important aspect that sec 54EC is only against sale of Long Term Capital Gains whereas capital gains arising under section 50 is always short term. So how can exe,ption u/s 54EC be claimed for short term capital gains arising under sec 50