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TMI Blog2013 (7) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... - Held that:- As both the assets sold by assessee form part of block of assets and were entitled to depreciation under the Act as stated by assessee the depreciation chart reveals that block of asset has not come to an end. It is very much available and once the respective block is not wiped out, the profit cannot be assessed on account of sale of asset. Also as that opening WDV far exceeds the full value of consideration received on sale for this asset. Hence, the profit cannot be brought to tax on capital gains. In favour of assessee. - ITA No.997/Kol/2010 - - - Dated:- 21-6-2013 - Shri N. S. Saini And Shri Mahavir Singh,JJ. For the Appellant : Shri D. K. Sonowal, SR-DR For the Respondent : Shri Ravi Tulsiyan, AR ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have carefully considered the submission of the Ld. A.r in the case under consideration though the payment was effected beyond the time prescribed in section 36(1)(va) but the same was duly paid by the appellant before due date of furnishing of the return. Hence considering the decision of the Hon'ble Karnataka High Court in the case of Commissioner of Income Tax v. Sabari Enterprises (2008) 298 ITR 141 (Karn) and duly affirmed by the Apex court in the ratio of CIT vs. Alom Extrusions Ltd. [319 ITR 306] and the recent decision of the Hon'ble Delhi High Court in the case of Commissioner of Income Tax v. AIMIL Limited the disallowance of Rs.9,12,895/- made by the A.O u/s. 43B/36(1)(va) is deleted. The appellant will get necessary relief accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sec. 50 of the Act, there will be no taxable Capital Gain. Further, since the full value of consideration of the asset sold does not exceed the value of the respective blocks therefore as per the provisions of Sec. 50 no capital gain arises. The profit of Rs.6,06,536/- is as per the books of account is not relevant for determining capital Gain. Considering above the addition of Rs.6,06,536/- made by the AO is deleted." We find that the provisions of Section 50 of the Act clearly compute the capital gains in the case of depreciable asset as under:- " The AO clearly failed to consider that capital gain in case of depreciable assets is determined as per Sec. 50 of the IT Act, which says: 'Notwithstanding anything contained inn clause (42 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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