9911796707
TMI Blog2006 (2) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... building had no value and therefore, got demolished. - no error in the order of the authorities below - - - - - Dated:- 1-2-2006 - Judge(s) : P. D. DINAKARAN., P. P. S. JANARTHANA RAJA. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran J.- The above tax case appeal is directed against the order of the Income-tax Appellate Tribunal in I.T.A. No.236/Mds/92 dated June 16, 2005. The brief facts of the case are stated as follows: The assessee owned 20,365 sq.ft. of land in Bangalore with an equivalent built up area and the same was treated as business asset and claimed depreciation. The assessee sold the property and claimed the gains arising therefrom as a long-term capital gains. But the Assessing Officer treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se (42A) of section 2, where the capital asset is an asset forming part of a block of assets in respect of which depreciation has been allowed under this Act or under the Indian Income-tax Act, 1922 (11 of 1922), the provisions of sections 48 and 49 shall be subject to the following modifications: (1) where the full value of the consideration received or accruing as a result of the transfer of the asset together with the full value of such consideration received or accruing as a result of the transfer of any other capital asset falling within the block of assets during the previous year, exceeds the aggregate of the following amounts, namely: (i) expenditure incurred wholly and exclusively in connection with such transfer or transfers; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icular asset. As already observed above, section 50 of the Act applies only when depreciable assets alone are transferred." It is, therefore, a settled law that even though the transaction involved land and building, once the land forms the assets of the undertaking, the transfer is of the entire undertaking as a whole and it is not possible to bifurcate the same, as suggested by the Assessing Officer in the instant case. All the more, in the instant case, the fact remains that the purchaser had applied for demolition of the building and also demolished the building, which was taken into consideration by the Commissioner and the Tribunal, while arriving at a conclusion that section 50 of the Act is not attracted, as, under the facts and cir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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