Exemption of capital gain - investment in securities

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..... Exemption of capital gain - investment in securities
Query (Issue) Started By: - JAYUL DANECHA Dated:- 2-1-2010 Last Reply Date:- 8-1-2010 Income Tax
Got 3 Replies
Income Tax
Mr. X has sold immovable property after claiming depreciation and earned short term capital gain. The asset was purchased long time before and was long term by nature as it was held for more then 36 months. Now c .....

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..... an Mr.x invest in securities mentioned U/s 54EC and Exempt capital gain? Pls inform there is any case law? Reply By Surender Gupta: The Reply: By virtue of section 50 which is overriding provision, makes it mandatory that any gain from sale of capital asset on which depreciation has been availed shall be treated as capital gains from sale of short term capital assets or in other words short term .....

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..... capital gains. Therefore, I do not agree with the proposal that you can avail the benefit of exempiton under section 54EC. Reply By DEV KUMAR KOTHARI: The Reply: Have asearch and U will find case law. Reply By DEV KUMAR KOTHARI: The Reply: This is a helpful judgment on similar provision of S. 54E [2003] 131 Taxman 699 (Gau.) High Court of Gauhati Commissioner of Income-tax v. Assam Petroleum Indu .....

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..... stries (P.) Ltd. P.P. Naolekar, Cj. and Amitava Roy, J. IT Appeal No. 30 of 2001 June 24, 2003 section 54E, read with section 50, of the Income Tax Act, 1961. - Capital gains - Not to be charged in certain cases - Assessment year 1991-92 - Whether section 50 nowhere says that depreciable asset shall be treated as short-term capital asset and section 54E has an application where long-term capital a .....

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..... sset is transferred - Held, yes - Whether capital gain may have been received by assessee on depreciable asset, and if conditions necessary under section 54E are complied with by assessee, he will be entitled to benefit under section 54E - Held, yes
Discussion Forum - Knowledge Sharing .....

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