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TMI Blog2014 (1) TMI 1349X X X X Extracts X X X X X X X X Extracts X X X X ..... er on account of expenditure claimed u/s 48(1) for eviction of premises. 2. deleting the addition of Rs. 10,08,000/- made by the Assessing Officer on account of short term capital gain on depreciable asset. 2. Rival contentions have been heard and records perused. The assessee is a limited company deriving income from the activities such as running cinema theater on hire. The assessee has offered capital gains in the return of income. While computing capital gains, the assessee had claimed payment of Rs. 9,92,000/- made to the tenant for vacating the premises as the assessee has to sell the said premises. The assessee was specifically asked to produce agreement, if any, of M/s. Bharat Pictures Pvt.Ltd. made with the tenants in regard to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ind that the similar issue came up in A. Y 2000-01 when the appellant had sold some of the shops out of the total shops owned by the appellant and part of which had been sold in the year under consideration. It is also seen that the matter had travelled before the Hon'ble ITAT, Indore Bench in ITA No. 136/Ind/06. I find that my Ld. Predecessor had, after examination of the documents placed before him, came to the conclusion that the reasons recorded by the A.O for reopening of the assessment were factually incorrect and accordingly, quashed the assessment. I have carefully perused the evidences placed before me, I find no reason to take a contrary view than that taken by my Ld. Predecessor in the appellant's own case inasmuch as the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mises. Thus, the disallowance of Rs. 9,92,000/- made by the A.O cannot be sustained. Hence, the disallowance is deleted. " 4. The ld. CIT(A) deleted the addition of Rs. 10,08,000/- made by the Assessing Officer on account of short term capital gain on depreciable assets, after having the following observations :- "The appellant has submitted that the AO ignored all other deductions including cost of acquisition and taxed the entire sale consideration Rs.20 lacs as a short term capital gain by invoking the provisions of section 50; that the shops were in the possession of old tenant and the new buyer agreed to buy the said shops in a vacant possession, therefore, the appellant paid Rs.9,92,000/- to the old tenant for vacating the said shop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on as per the provisions of the LT. Act; that the said claim of the depreciation in this year was Rs.1,46,318/-; that the depreciation charts from A.Y. 2001-02 to 2004-05 which would show that on the shops there was no claim of deprecation. " 5. Rival contentions have been considered and records perused. Facts in brief are that during the year under consideration, the assessee had sold some of its shops for Rs. 20 lakhs on which the assessee has claimed net long term capital loss of Rs. 29,44,699/-, which worked out as under :- Sale consideration 20,00,000 Less : Paid to tenant for eviction of premises claimed deduction u/s 48(1) being expenditure 9,92,000 Balance 10,08,000 Less: Indexed cost of acquisition 39,52,699 Net Long Term ..... X X X X Extracts X X X X X X X X Extracts X X X X
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