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2013 (9) TMI 1056 - ITAT MUMBAICapital gain computation u/s 50 r.w.s 50C - Held that:- For the purpose of computation of capital gain, the flat has to be treated as short term capital gain u/s 50 of the IT Act, but for the purpose of applicability of tax rate it has to be treated as long term capital gain if held for more than three years. We accordingly direct the AO to compute the capital gain from the sale of flat and apply the appropriate tax rate after necessary verification in the light of observations made in this order. Addition of bad debts - Held that:- Deposits/advances given in connection with business are very old and have not been recovered till now. The assessee had, therefore, written off the amounts in the books of accounts. It is not cost effective to enforce recovery by filing suits. In our view, considering the smallness of amounts and the facts and circumstances of the case, claim has to be allowed as business loss.
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