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TMI Blog2024 (10) TMI 1151X X X X Extracts X X X X X X X X Extracts X X X X ..... d the said aspect also while disposing the appeal preferred by the revenue, especially because the order of the First Appellate Authority, that was impugned by the revenue before it, was in favour of the appellant herein. Thus, while we uphold the finding of the Tribunal that the charge of Short Term Capital Gains, in the instant case, has to be as mandated in Section 45(4) we remand the matter back to the Tribunal for computing the extent of short-term capital gains, if any, that would be brought to tax in relation to the appellant herein. The Appellate Tribunal would have to do the said exercise by taking into account the totality of transactions effected during the previous year relevant to the assessment year in question.Decided against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the transfer of the depreciable capital assets attracted capital gains tax under Sec.45(4) of the Act, in the absence of distribution of any capital asset among the partners following a dissolution of the appellant firm? (iii) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in upsetting the conclusion reached by the CIT (Appeals) that under Sec.50 of the Act, the transfer in question was not exigible to capital gains tax? (iv) Are not the provisions of Sections 50A and 45(4) of the Act inapplicable to the facts and circumstances of the case and is not Sec.50 of the Act the correct provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income to the tune of Rs. 9,77,46,777/-. Of the said amount, an amount of Rs. 6,50,77,334/- was attributed to the short-term capital gains alleged to have accrued to the appellant firm by computing the same in accordance with S.50A of the IT Act. 4. In an appeal carried by the appellant before the First Appellate Authority, the said Authority found that the Assessing Authority, while making this computation of short-term capital gains, had not factored in the addition of the building valued at Rs. 7,40,00,000/-, that was brought into the firm by the incoming partner, namely, Poonghat Shrinivas, and hence the written down value as on 31.03.2012, at the end of the previous year, after allowing depreciation, would be Rs. 41,94,640/-. He, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 45(4) of the Income Tax Act. If that be so, then the only other question to be considered is regarding the manner in which the short-term capital gains that are chargeable under Section 45(4) of the Income Tax Act have to be computed. A reading of the provisions of Section 45(4) would indicate that the computation has to be in the manner prescribed under Section 48, as modified by Section 50(1) of the Act. The consequence of an application of the said provisions of the IT Act to the income assessed in respect of the appellant firm, has not been discussed by the Tribunal in the impugned order. We are of the view that the Tribunal ought to have considered the said aspect also while disposing the appeal preferred by the revenue, especial ..... X X X X Extracts X X X X X X X X Extracts X X X X
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