The assessee transferred immovable properties which formed part of block of assets on which depreciation was claimed. In ROI, the assessee company offered the gains as STCG u/s. 50 but paid tax as per section 112 at 20% plus surcharge. AO added tax at the rate of 30% as per STCG tax applying section 50(1). Held that section 50 starts with a non obstante clause and is a deeming provision which should be strictly limited to the purpose mentioned therein. The exclusion prescribed by the non obstante clause is limited to the purpose of modification of sections 48 and 49 and such non obstante clause cannot be applied to any other provisions contained in the Act. The provisions of section 50 changes the characteristic of the gain that in some cases a long-term to a short-term capital gain where assets are held beyond the specific term. However, the section does not change the characteristic of the capital asset held by the assessee, that is, the long-term capital asset will remain a long-term capital asset for all other purposes, but for the deeming fiction under section 50, capital gains is taxable as if it is gain arising from transfer of a short-term capital asset. Held that the rate of tax is applicable for the transfer of a long-term capital asset has to be in accordance with section 112. The deeming fiction of section 50 cannot be imported under section 112. Majority view . (AY. 2000-01 )