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Issues involved: Interpretation of provisions of section 50C and section 50 for computation of gain on depreciable assets.
Summary: The appeal by the Revenue was against the Order passed by the CIT(A)-VI, Mumbai for the assessment year 2004-2005. The Revenue contended that section 50C could not be applied when section 50 was applicable, emphasizing the specific provisions of each section. The assessee, engaged in the business of petroleum products and transport, had declared house property income but the Assessing Officer disallowed deduction under section 24 for a property in a commercial locality. Additionally, the Assessing Officer applied section 50C to a depreciable asset sale, which the assessee argued against, leading to an appeal. The learned CIT(A) directed the Assessing Officer to rework the depreciation, stating that the sale value of depreciable assets should be reduced from the block of assets, not an artificial value. The Revenue, aggrieved by this decision, cited a previous ITAT decision to support their argument that fair market value should not be considered for reducing the block of assets. However, the ITAT upheld the CIT(A)'s decision, emphasizing that the sale price of the asset should be the determining factor for computing the block of assets, not an assumed market value. After considering the submissions and records, the ITAT dismissed the Revenue's appeal as the CIT(A)'s decision was in line with the ITAT's previous ruling, finding no infirmity in the Order.
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