Type of capital gains in case of depreciable assets

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2011 If by sale of any capital assets in which depreciation has been claimed,then its a short term capital gain/loss.

is there any exception?

referring to power generating units claiming depreciation on SLM basis.

in this case can the gain/loss arising out of sale of such an asset be a long term gain/loss?

CA AMRESH KUMAR MISHRA

CA AMRESH KUMAR MISHRA (Expert)
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05 December 2011 Gain/Loss arising from sale of depereciable asset is always short term.At the time of computation block must be cease to exist. in case of power generating unit wdv of individual asset should be consider. There is no specific exemption for this STCG.

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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06 December 2011 Hi,

In case of transfer of Depreciable Assets, Sec 50 is applicable, By virtue of Section 50, CG on Trf of a Dep Asset shall be treated as STCG no doubt about it,

But, Nowhere Section 50 says tht, for the purpose of Sec 54 EC , Depreciable Asset would be treated as Short Term Capital Asset, Sec 54 EC is an Independent Section
AND
Therefore 54EC benefit is Available notwithstanding the fact the Gains is STCG, but Assuming the asset was held as Long term.

Please Refer to the following Judicial Decisions.

1) CIT v/s Assam Petroleum Industries (P) Ltd {2003} 131 TAXMAN 699 (Gau.)

2) CIT v/s ACE Builders (P) Ltd {2005} 144 TAXMAN 855 (Bom.)

Thanks
Regards
CA.Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

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Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2011 CA LOHITH JAGADEESH & CA AMRESH KUMAR MISHRA thanx a lot!!!!!!!its been so kind of u to help me....
thanx once again....

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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08 December 2011 Hi,

Your welcome.

Regards