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.
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.
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