Tribunal held that, asset transferred was land and not staff quarters, land is not a depreciable asset and it was not a part of block of assets. In absence of a rate of depreciation having been prescribed, provisions of S.. 50 could not be invoked. Therefore profit on sale of land is assessable as long term capital gains .(AY.2009-10, 2011-12)
ACIT v. Seth Industries (P.) Ltd. (2018) 171 ITD 326 (Mum)(Trib.)
S.50 : Capital gains – Depreciable assets – Block of assets – Land on which staff quarters were situated – Staff quarters depreciation was claimed – No depreciation was claimed on land- Profit on sale of land is assessable as long term capital gains .[ S.2(11),45 ]