The Assessing Officer, passed an order  wherein he made an addition attributed to the short-term capital gains alleged to have accrued to the assessee-firm by computing it in accordance with section 50A. The Commissioner (Appeals) found that while the Assessing Officer computed the short-term capital gains, had not factored in the addition of the building valued at Rs. 7.4 crores, that was brought into the firm by an incoming partner, and hence the written down value as on March 31, 2012, at the end of the previous year, after allowing depreciation would be reduced and reduced the addition of short-term capital gains. In its appeal against such order, the Department raised an additional ground, which was accepted on record by the Tribunal, where under it was contended that the capital gains had to be charged under section 45(4) and that the computation methodology adopted by the Assessing Officer and the Commissioner (Appeals) was not.  On appeal   the Tribunal was right in allowing the additional ground raised by the Revenue before the second appellate forum, which were not raised either by the Assessing Officer or the Commissioner of Income-tax (Appeals) nor considered by them. The Tribunal after hearing the rival contentions had found force in the submission of the Revenue and held that the charge of short-term capital gains had to be in accordance with the provisions of section 45(4), but the Tribunal had not proceeded to determine the tax effect, if any, that would follow pursuant to its finding. The Tribunal was right in holding that the transfer of the depreciable capital assets attracted capital gains tax under section 45(4) in the absence of distribution of any capital asset among the partners following the dissolution of the assessee firm. On the facts, the charging provisions for short term capital gains under the Act, were as stipulated under section 45(4). Under section 45(4) the computation had to be in the manner prescribed under section 48, as modified by section 50(1). The Tribunal ought to have discussed the consequence of application of these provisions to the income of the assessee in its order also while disposing the appeal preferred by the Revenue, especially since the order of the Commissioner (Appeals) was in favour of the assessee. Though the finding of the Tribunal that the charge of short-term capital gains, had to be computed as mandated in section 45(4), had been affirmed the matter was remanded back to the Tribunal, for the specific finding on the extent of short term capital gains if any to be computed and brought to tax. The Tribunal should examine the provisions of section 48, as modified by section 50(1) and would have take into account the totality of transactions effected during the previous year relevant to the assessment year 2012-13. Matter remanded. (AY. 2012-13)