| Question And Answer | |
|---|---|
| Subject: | commercial property |
| Category: | Income-Tax |
| Querist: | bks |
| Answered by: | Law Intern |
| Tags: | redevelopment |
| Date: | September 29, 2025 |
when a new shop is allotted after redevelopment, is it taxable ? any case law ?
does it make if it was depreciable ?
Yes. U/ 45(5A), there is a transfer on redevelopment and capital gains are chargeable. Exemption u/s 54 will not be available as the reinvestment is in a commercial property. If the old property was depreciable, than the transaction will have to be processed as STCG u/s 50 by reducing the consideration from the block of assets.
The principles of law are well explained in Anil Dattaram Pitale v. ITO (ITAT Mumbai).
Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org